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:
Naldecon - leading cough & cold brand Tempra - No.1 in adult and pediatric
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
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.
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
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)
Director, Investor Relations
+44 1753 217800
Reckitt Benckiser (RB)
SVP, Global Corporate Communication & Affairs
+44 1753 446447
Brunswick (Financial PR)
David Litterick / Max McGahan
+44 (0)20 7404 5959
-0- Feb/12/2013 11:53 GMT
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