UPDATE: Reckitt Benckiser Agrees GBP2.54B Offer For SSL

21st Jul 2010 07:31

(Adds detail.) By Jason Douglas Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Household products maker Reckitt Benckiser Group PLC (RB.LN) Wednesday said it agreed a 1,163 pence a share offer for SSL International PLC (SSL.LN), valuing the Durex maker at GBP2.54 billion. Reckitt said the acquisition of SSL would add Durex condoms and Scholl footcare products to its stable of "Powerbrands" and will immediately boost earnings. Reckitt Chief Executive Bart Becht said the acquisition of London-based SSL will mean a step change for Reckitt's health and personal care products unit. It is anticipated the acquisition will increase revenue at the unit 36% to roughly GBP2.8 billion, or one third of the group's total sales. Becht added the deal will also materially enhance the scale and critical mass of Reckitt's business in China and Japan and will generate cost savings from combining similar operations of GBP100 million a year from 2012. Due to its well-known brands, global reach and expanding sales, SSL has frequently been the subject of takeover speculation in recent years, with Reckitt and others, including France's L'Oreal S.A. (OR.FR), named as likely suitors. Reckitt Benckiser's offer represents a premium of 32.8% to SSL's closing price Tuesday and is four times SSL's share price five years ago, according to SSL Chairman Gerald Corbett. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; [email protected] (END) Dow Jones Newswires July 21, 2010 02:31 ET (06:31 GMT)