Reckitt Benckiser to Acquire SSL for

Arthi Gupta
21 Jul, 2010
New York City

Reckitt Benckiser agrees to acquire SSL International in a deal valued at

[R]4:30 PM London – Reckitt Benckiser agrees to acquire SSL International in a deal valued at £2.5 billion. The acquisition of SSL provides a broadening of Reckitt Benckiser''s global health and personal care business.[/R]

The boards of Reckitt Benckiser Group plc and SSL International plc announced an agreement on the terms of a recommended cash offer to be made by Reckitt Benckiser plc, a wholly-owned subsidiary of Reckitt Benckiser, to acquire the entire issued and to be issued share capital of SSL.

Under the terms of the offer, SSL shareholders will be entitled to receive 1163 pence in cash per SSL share and will also remain entitled to receive the proposed final dividend of 8 pence per share in respect of the year ended March 31, 2010, representing, in aggregate, 1171 pence per SSL share.

The offer price plus the SSL Dividend values SSL International''s fully diluted share capital at about £2.54 billion.

The cash consideration payable by Reckitt Benckiser under the terms of the offer would be funded using a new £1.25 billion loan facility and other facilities arranged by HSBC Bank plc, together with Reckitt Benckiser''s working capital resources and existing facilities.

Commenting on the offer, Bart Becht, Chief Executive Officer of Reckitt Benckiser, said, “The acquisition of SSL will provide a step change to Reckitt Benckiser''s global health & personal care business, which has been a key driver of Reckitt Benckiser''s net revenue growth and profit progression. It is anticipated that the acquisition will increase Reckitt Benckiser''s health & personal care net revenues by over 36% to approximately £2.8 billion, one third of the Group’s total net revenues.

We expect cost synergies in the region of £100 million per annum from the combined group by the end of 2012, resulting in an improved margin profile for the acquired business. This, combined with the good growth potential of the SSL business, makes it an attractive acquisition for Reckitt Benckiser''s shareholders. Excluding restructuring charges, the deal is expected to be immediately earnings enhancing for Reckitt Benckiser.”

SSL is a consumer products company with leading global brands such as Durex and Scholl, as well as a portfolio of local brands.

Reckitt Benckiser is a leader in household and health & personal care. The acquisition of SSL provides Reckitt Benckiser with an attractive opportunity to increase its presence in the health & personal care sector.