Reckitt Benckiser makes 2.54 bln pounds ($3.9 bln) bid for SSL International, maker of Durex
By APWednesday, July 21, 2010
Durex maker accepts $3.9B bid by Reckitt Benckiser
LONDON — SSL International PLC, maker of Durex condoms and Scholl foot care products, said Wednesday that its board is recommending a 2.54 billion pounds ($3.9 billion) takeover offer from Reckitt Benckiser PLC, the producer of Vanish, Lysol and Clearasil.
Reckitt Benckiser said its offer of 1,163 pence per share plus a final dividend for last year of eight pence represents a premium of 33 percent over SSL’s share price on July 20.
“We view this as a very good price for SSL shareholders, and an excellent strategic fit for Reckitt Benckiser,” said Damian McNeela and Graham Jones, analysts at Panmure Gordon & Co. “We do not see a counter offer being made and expect shareholders to accept the offer.”
Reckitt Benckiser, based in Slough, England, also produces brands such as Finish, Nurofen and French’s mustard. SSL is based in London.
“It is anticipated that the acquisition will increase Reckitt Benckiser’s health and personal care net revenues by over 36 per cent to approximately 2.8 billion pounds, one-third of the group’s total net revenues,” said Bart Becht, chief executive officer of Reckitt Benckiser.
He said the acquisition is expected to yield cost savings of about 100 million pounds per year by the end of 2012.
Reckitt Benckiser share were up 4.3 percent at 3,327 pence in early trading on the London Stock Exchange. SSL International shares were up 34 percent to 1,185 pence.
