SSL acquires rivals in £81m deal
CONDOM maker SLL International has bought the majority stakes in two former Eastern bloc rivals in deals worth more than £80m.
The group, which has its European headquarters in Trafford, has spent £63m increasing its shareholding from 15.5% to 50% plus one share in BLBV, which distributes condoms and medical products across the Commonwealth of Independent States which include Belarus, Georgia, Kazakhstan and Russia.
SLL has also exercised options to buy a 100% stake in Gainbridge which supplies medicines and birth control products to the Ukraine. The group has paid £18.7m for the group.
Both deals will be funded by SLL’s existing facilities, and the group has a further option to buy the remaining shares in BLBV early next year.
In the year to December 2007, and at today’s exchange rate, BLBV reported revenue of £102.7m with profit before tax of £16.5m, while Gainbridge had a turnover of £16m with profit before tax of £2.24m.
SSL chief executive Garry Watts said: “We have been delighted with our initial investment in BLBV and the underlying performance of the business since then has been in line with our initial expectations.
“Together with BLBV’s existing shareholders, we have made good progress in bringing our businesses together.
“Despite the current environment, we remain optimistic for these businesses and the potential for SSL’s products within the CIS and Eastern Europe. We expect the completion of the two transactions announced today to have a beneficial impact on our financial performance.”
