LONDON — Reckitt Benckiser Group has reached an agreement to acquire SSL International, the maker of Durex condoms and Scholl foot care products.
Reckitt Benckiser Group has reached an agreement to acquire SSL International, the maker of Durex condoms and Scholl foot care products.
The companies said Wednesday that Reckitt Benckiser has agreed to pay 2.54 billion pounds ($3.9 billion) to buy SSL. According to Reckitt Benckiser, the offer provides a roughly 33% premium over SSL’s stock price as of July 20.
"The acquisition of SSL will provide a step change to Reckitt Benckiser’s global health and personal care business, which has been a key driver of Reckitt Benckiser’s net revenue growth and profit progression," Bart Becht, chief executive officer of Reckitt Benckiser, said in a statement.
Becht noted that the acquisition is expected to increase Reckitt Benckiser’s health and personal care net revenue by over 36% to about 2.8 billion pounds, one-third of the group’s total net revenue.
"The acquisition will add two new power brands, with good further growth potential, to Reckitt Benckiser’s current arsenal, making 19 power brands in total," Becht stated. "Durex, in the sexual well-being category, is the global No. 1 condom brand and Scholl is the market leader in the foot care category in many of the markets where it is present.
"We believe that we could drive further growth in the acquired business, especially
Durex and Scholl, by investing in SSL and Reckitt Benckiser’s proven innovation and brand-building capabilities and by taking advantage of our greater distribution strength," he added.
SSL has operations in more than 30 countries in Europe, the Asia-Pacific region and the Americas, and it sells into over 100 nations across the globe.
"Reckitt Benckiser is a well-regarded company, and I am sure our brands and people will be in good hands," SSL chairman Gerald Corbett said in a statement.
Reckitt Benckiser’s products span the household, health and personal care categories. Its global portfolio of brands includes Finish, Lysol, Dettol, Vanish, Woolite, Calgon, Airwick, Harpic, Cillit Bang, Mortein, Veet, Nurofen, Clearasil, Strepsils, Gaviscon, Mucinex and French’s.