Acquisition(s)
PRESS RELEASE
13 December 2010
RECKITT BENCKISER GROUP PLC
RB Buys India's Paras Pharmaceuticals Ltd
Reckitt Benckiser Group plc (RB) today announces that it has agreed to buy
Paras Pharmaceuticals Limited (Paras) for INR 32.6 billion (Indian Rupees)
(approximately GBP 460 million) from the current shareholders, including the
Patel family and Actis, the emerging markets private equity investor. RB will
finance the transaction from existing facilities.
Paras is a privately-owned Indian company with a portfolio of leading Indian
over the counter Health and Personal Care brands including:
Moov, the No 2 topical analgesic pain ointment,
D'Cold, the No 2 cold & flu remedy,
Dermicool, the No 2 for prickly heat,
Krack, the No 1 medicated skin treatment for cracked heels and
Itch Guard and Ring Guard anti fungal creams
In addition, Paras has a personal care business led by Set Wet, a leading hair
gel and deodorant brand.
In the fiscal year ending March 2010, Paras generated net sales of INR 4,014
million, representing a mid-teens average growth rate over the last four
years, and operating EBITDA for the same year of INR 1,083 million
(approximately GBP 56 million and GBP 15 million respectively).
The company has a brand new state of the art and GMP compliant manufacturing
plant located at Baddi in Northern India, which employs around 700 people.
Commenting on the acquisition, Reckitt Benckiser CEO, Bart Becht, says, "The
acquisition of Paras is another step forward in RB's growth strategy in
consumer health care. It creates a material health care business in India, one
of the most promising health care markets in the world with the addition of a
number of strong and leading brands."
"We believe the Paras business has not only extremely good growth potential,
when supported by RB's investment and innovation strength, we also expect to
realize material synergies as a result of the integration of Paras into Reckitt
Benckiser."
"The growth potential of the business, the creation of a material health care
business in India's large and growing health care market and the global
synergies available make Paras an exciting addition to our portfolio and
attractive opportunity for our shareholders."
RB was advised by JPMorgan. Actis and the other Paras shareholders were advised
by Morgan Stanley.
* ENDS -
Notes to Editors:
About Reckitt Benckiser plc
Reckitt Benckiser (RB) is a world leader in household, health and personal
care.
It is a FTSE top 25 company and since 2000 net revenues have 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 -
typically about 35% of net revenue comes from innovations launched in the prior
3 years. It has a strong portfolio led by 19 global powerbrands which are:
Finish, Lysol, Dettol, Vanish, Woolite, Durex, Calgon, Airwick, Harpic, Bang,
Mortein, Veet, Nurofen, Clearasil, Strepsils Gaviscon, Mucinex, Scholl and
French's, and they account for 70% of net revenue.
RB people are at the heart of the company's success. They have an intense drive
for progress and action and a desire to outperform wherever they focus,
including in CSR where the company has the most ambitious corporate
responsibility programme in the industry through its Carbon 20 initiative.
Headquartered in the United Kingdom, the company employs about 25,000 people
worldwide, with operations in over 60 countries and sales in almost 200
countries.
For more information visit RB.COM
For further information, please contact:
Reckitt Benckiser
Joanna Speed Investor Relations +44 (0)1753 217800
Brunswick (Financial PR)
David Litterick Media Relations +44 (0)20 7404 5959
(office)/ +447974 982 455
(mob)
Teresa Bianchi Media Relations +44 (0)20 7404 5959
(office)/ +447834 502 477