Reckitt Benckiser to acquire SSL International for €2.54 billion
21 Jul 2010
Reckitt Benckiser, the Anglo-Dutch household products and drugs group, today said that it has agreed to buy Durex condom and Scholl foot-care maker SSL International for €2.54 billion ($3.89 billion) in order to expand its presence in the health and personal care sector.
Reckitt Benckiser, which late last year was close to a multi-billion pound merger with US consumer goods giant Colgate-Palmolive, had also seen SSL International as a potential takeover target. (See: Reckitt Benckiser may merge with Colgate-Palmolive: report)
UK-based Reckitt Benckiser, which plans to add condoms and insoles to its vast portfolio, is offering to pay 1,163 pence in cash per SSL share and a dividend of 8 pence a share, valuing the company at £2.54 billion including assumption of SSL's £41.1 million debt.
Reckitt Benckiser's offer is a premium of 33 per cent to SSL's yesterday closing price of 882 pence.
Founded in 1814, Reckitt Benckiser produces some popular household products like Harpic, Dettol, Clearasil, Air Wick air fresheners, Nurofen headache treatments and Vanish stain removers among others.
It has operations in over 60 countries, including 42 manufacturing facilities, sales in over 180 countries and employs almost 25,000 people globally. The company reported sales of $7.8 billion and net profit of $1.4 billion last year.