Reckitt to buy condom firm SSL for $3.8 b

Reckitt to buy condom firm SSL for $3.8 b

The British maker of Nurofen painkillers and Strepsils and Lemsip cold remedies will pay 1,171 pence per SSL International share, representing a 33 per cent premium to Tuesday’s closing price.

The price includes the 8 pence final dividend. Reckitt Chief Executive Bart Becht said the deal should increase the group’s health and personal care net revenues by over 36 per cent to around £2.8 billion, one third of the group’s total revenues.

“The acquisition will increase our health & personal care net revenue by over 36 per cent to approximately £2.8 billion, one third of group’s total net revenue,” Becht noted.

SSL’s board recommended offer, which Chairman Gerald Corbett said was four times the level of the company’s share price five years ago.