SSL agrees bumper £2.54bn takeover deal
CONSUMER healthcare company SSL International, which has its European HQ in Trafford, has agreed a £2.54bn takeover offer from Reckitt Benckiser – the household goods firm behind Cillit Bang cleaner.
SSL, best known for its Durex condoms and Scholl footwear brands, began life as Seton Healthcare in Oldham before a series of deals in the 1990s transformed the company. It employs more than 500 people in the North West, 200 in Trafford and 300 at its UK distribution base in Middleton.
The offer from Reckitt Benkiser, which includes SSL’s final dividend of 8p per share, is for 1171p per share, a premium of approximately 32.8% to the closing price of 882p share yesterday.
SSL chairman Gerald Corbett said: “In the last five years, product development, cost control, improvement to systems and supply chains and well judged acquisitions have trebled SSL’s profits
“Garry Watts (our CEO), his management team and every SSL employee around the world can be truly proud of what has been achieved. This offer is some four times the level of SSL’s share price five years ago.
“I believe few shares in investors’ portfolios have done as well. Reckitt Benckiser is a well regarded company and I am sure our brands and people will be in good hands.”
Reckitt Benckiser, which also behind Finish dishwasher products and the Gaviscon anti-indigestion brand, said the deal would offer a “step change” in its health business.
It would also “materially enhance” the scale of its business in China and Japan, it added.
Bart Becht, chief executive of Reckitt Benckiser, said: “The acquisition will add two new Powerbrands, with good further growth potential, to Reckitt Benckiser’s current arsenal, making 19 Powerbrands in total.”
He added: “Underlying growth of SSL’s branded consumer business was 4% in its last financial year.
“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.”
