Consumer goods company Reckitt Benckiser Group plc (RB.L) Wednesday said it has signed a deal to buy SSL International plc (SSL.L), the maker of Durex condoms and Scholl footwear, for about GBP 2.54 billion or about US$3.9 billion.
SSL said its Directors consider the terms of the offer to be fair and reasonable and intend to recommend unanimously its shareholders accept the offer. SSL shares climbed more than 32% on the London Stock Exchange in morning trade.
Under the terms of the deal, each SSL shareholder would get 1163 pence in cash and also will be entitled to get a final dividend of 8 pence in respect of the year ended March 31, representing, in aggregate, 1171 pence per SSL share. The deal value represents a premium of around 32.8% to the closing price of 882 pence per SSL share on July 20, being the last day prior to the announcement date.
Reckitt Benckiser expects the acquisition to increase its health and personal care unit net revenues by more than 36% to around GBP 2.8 billion, which is one third of the Group's total net revenues. In fiscal year 2010, SSL's brand contribution grew 6.5% year-over-year to GBP 275.7 million, representing 40.6% of sales.
The acquisition is expected to add two new Powerbrands: Durex and Scholl, to Reckitt Benckiser's current arsenal, making 19 Powerbrands in total. The proposed acquisition is also anticipated to materially enhance Reckitt Benckiser's businesses in China and Japan.
Reckitt Benckiser expects cost synergies of around GBP 100 million per annum from the combined group by the end of 2012, resulting in an improved margin profile for the acquired business. Excluding restructuring charges, the deal is expected to be immediately earnings enhancing for Reckitt Benckiser.
Commenting on the deal, Reckitt Benckiser' Chief Executive Officer Bart Becht said, "The acquisition of SSL will provide a step change to Reckitt Benckiser's global health & personal care business, which has been a key driver of Reckitt Benckiser's net revenue growth and profit progression."
SSL, which also owns local brands like Mister Baby, Sauber, Silkoplast, Meltus, Medised and Paramol, reported a surge in pre-tax profit for the year ended March 31 due to a 24.9% rise in revenues, driven by organic growth in Durex, Scholl and acquisitions. Annual pre-tax profit increased 50.7% year-over-year to GBP 115.3 million on revenues of GBP 802.5 million.
SSL has operations in more than 30 countries across Europe, Asia Pacific and the Americas, sells into over 100 countries worldwide, and has manufacturing operations in India, Thailand, China and the UK. SSL employs approximately 10 thousand people globally.
RB is currently trading at 3,260 pence per share, up 70 pence or 2.19% on the LSE, while SSL.L is currently trading at 1,170 pence per share, up 288 pence or 32.65%.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.