Reckitt snaps up SSL for £2.5bn

21st Jul 2010 07:09

After years of rumour and speculation, one of the market's most widely tipped takeovers is about to come to fruition after condom and footcare group SSL agreed an all-cash bid from Reckitt Benckiser.Reckitt is to pay SSL shareholders 1,163p per share with a final dividend taking the total up to 1,171p per share. The bid values SSL in total at £2.54bn.The offer price is a premium of a third to the closing price yesterday of SSL, which is best known for its Durex and Scholl brands.Reckitt expects cost synergies of £100m per annum from the combined group by the end of 2012. Excluding restructuring charges, the deal is expected to be immediately earnings enhancing, Reckitt Benckiser added."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," Reckitt's chief executive Bart Becht said.In a separate trading update, SSL said the performance of the business in the year to date has been entirely satisfactory with both Durex and Scholl continuing to perform well. The launch of Scholl footcare into Russia has begun, it added.