SSL spends £140m on Russian venture

SSL International has increased its stake in a business that sells condoms in the former Soviet Union.

Last year the group, which owns the Durex brand, paid £63m to increase its holding in BLBV from 15% to 50%.

It has now taken its stake to 75% for “no more than £140m” from cash and existing facilities. It also has an option to acquire the rest of the business next year from minority shareholder Abraca.

SSL said BLBV, which distributes condoms and medical products across the Commonwealth of Independent States which includes Belarus, Georgia, Kazakhstan and Russia, had recorded strong growth with earnings before interest, tax, depreciation and amortisation of $50m.

Chief executive Garry Watts said: “We have been delighted with our investment in BLBV; the underlying performance of the business since our partnership began has exceeded all our expectations. Together with BLBV’s existing shareholders and management, we have made excellent progress in bringing our businesses together. We are very optimistic for BLBV’s prospects and the potential for SSL’s products within the CIS and Eastern Europe.”

He added: “We are pleased to have reached an agreement which allows us to strengthen our control of BLBV in a staged and balanced manner. We expect that the completion of the transaction announced today will have a beneficial impact on our financial performance and be earnings enhancing in the first year.”

SSL, which has its European headquarters in Manchester, also owns the Scholl footwear brand.