12 February 2012 RECKITT BENCKISER ANNOUNCES LATAM OTC COLLABORATION WITH BRISTOL-MYERS SQUIBB Slough, England - 12 February, 2012 - Reckitt Benckiser Group PLC ("RB") (LSE: RBL) today announced that it has signed a three year collaboration agreement with Bristol-Myers Squibb ("BMS") for a number of market-leading over-the-counter ("OTC") consumer health care brands in Brazil, Mexico and certain other parts of Latin America (collectively "BMS Assets"), with an option to purchase at the end of the three year period. The key brands included under the agreement are: Brazil Mexico Naldecon - leading cough & cold brand Tempra - No.1 in adult and pediatric pain relief Luftal - No.1 in anti-flatulence Picot - No.1 in antacids Dermodex - leading nappy rash brand Graneodin-B - No.1 in sore throat Under this collaboration, RB will licence the brands from BMS, who will continue to manufacture them for three years. Rakesh Kapoor, Reckitt Benckiser Chief Executive Officer, said, "This transaction creates a material consumer health care platform, infrastructure and distribution network for RB in both Brazil and Mexico. As such it is an important step in building our consumer health care presence in Latin American emerging markets. "These market-leading brands have strong margins and I firmly believe they have extremely good growth potential. They fit into our existing OTC categories of pain relief, sore throat, cough and cold, anti-acid, and dermatological and will benefit from RB's consumer marketing and innovation capabilities, and our significant levels of brand equity investment." Under the terms of the agreement RB will initially pay BMS $482 million to enter into the arrangement which also includes personnel, supply contracts and an option to acquire legal title to the related intellectual property at the end of the collaboration period, based on business performance. The transaction will be accounted for as a business combination and the Directors are in the process of revaluing the assets and liabilities acquired to fair value, including the value of any acquired intangible assets. Under the terms of a separate supply agreement BMS will be RB's supplier of the products during the collaboration period. BMS Assets had unaudited reported net revenue for the year ended 31 December 2012 of $102 million. We expect the transaction to be EPS* accretive from 2014 under IFRS. Excluding the amortization we expect it to be immediately EPS* accretive(1). The collaboration will come into effect following regulatory approvals, including anti-trust approvals in the relevant jurisdictions. This is expected to be completed in Q2 2013. *Adjusted results exclude the impact of exceptional items (1) Under IFRS a fair value of the collaboration agreement is required to be calculated and amortized over the collaboration period. ENDS About Reckitt Benckiser Reckitt Benckiser (RB) is a global consumer goods leader in health, hygiene and home, listed on the London Stock Exchange (LSE). With a purpose of delivering innovative solutions for healthier lives and happier homes, RB is in the top 25 of companies listed on the LSE. Since 2000 net revenues have more than doubled and the market cap has quadrupled. Today it is the global No 1 or No 2 in the majority of its fast-growing categories, driven by an exceptional rate of innovation. Its health, hygiene and home portfolio is led by 19 global Powerbrands including Nurofen, Strepsils Gaviscon, Mucinex, Durex, Scholl, Lysol, Dettol, Clearasil, Veet, Harpic, Bang, Mortein, Finish, Vanish, Woolite, Calgon, Airwick, and French's, and they account for 70% of net revenue. RB people and its culture are at the heart of the company's success. They have an intense drive for achievement and a desire to outperform wherever they focus, including in CSR where the company has reduced its carbon footprint by 20% in 5 years and is now targeting to deliver a 1/3 reduction in water use, 1/ 3 further reduction in carbon and have 1/3 of its net revenue coming from more sustainable products by 2020. It is also the Save the Children charity's largest FMCG global partner. The company has operations in over 60 countries, with headquarters in the UK, Singapore, Dubai and Amsterdam, and sales in almost 200 countries. The Company employs approximately 32,000 people worldwide. For more information visit www.rb.com Forward-Looking Statements Statements herein regarding the proposed transaction between Reckitt Benckiser and BMS, future financial and operating results and any other statements about future expectations constitute "forward looking statements." These forward looking statements may be identified by words such as "believe," "expects," "anticipates," "projects," "intends," "should," "estimates" or similar expressions. Such statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward looking statements. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless required by law. # # # Investor & Analyst Contacts: Reckitt Benckiser (RB) Richard Joyce Director, Investor Relations +44 1753 217800 Media Contacts: Reckitt Benckiser (RB) Andraea Dawson-Shepherd SVP, Global Corporate Communication & Affairs +44 1753 446447 Brunswick (Financial PR) David Litterick / Max McGahan +44 (0)20 7404 5959 END -0- Feb/12/2013 11:53 GMT
RECKITT BENCKISER GROUP PLC: Acquisition(s)
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