SSL International PLC
29 September 2000
The issuer has made the following amendment to the Disposal/Re Agreement
announcement released today at 07:00 under RNS No 7453R.
The tenth paragraph should read: 'Commenting on the technology sharing agreement
and the sale of Scholl rights in Latin America, Stuart Wallis, Chairman of SSL
said:' inserting 'sale of' which was omitted in the original text.
All other details remain unchanged.
The full corrected version is shown below.
SSL International plc
Sale of US unbranded condom manufacturing facility and Scholl
brand in Latin America
Signing of new technology sharing agreement with Schering-Plough
SSL International plc ('SSL'), the international manufacturer and
distributor of healthcare products, announces the sale of its US
unbranded condom manufacturing facility, the signing of a new
technology sharing agreement with Schering-Plough Healthcare
Products Inc and the sale of the Scholl brand in Latin America.
Sale of unbranded condom manufacturing facility
SSL has completed the disposal of its unbranded condom
manufacturing facility in Eufaula, Alabama, to Custom Services
International Inc ('CSI'). SSL announced its intention to sell
this operation in June 2000 following a comprehensive group
The Eufaula plant manufactures unbranded condoms for supply to a
number of government and aid agencies, the largest of which is
the US Agency for International Development ('US AID').
CSI is an established international condom manufacturer and
distributor in the United States and Latin America, and will
continue to operate the Eufaula factory as a condom manufacturing
site. The US AID supply contract is in the process of being
transferred to CSI as part of the transaction.
The consideration for the Eufaula facility, comprising land and
buildings, plant and machinery and stock, was approximately $8.3
million in cash. The site employs approximately 250 people, most
of whom will be retained by CSI following the sale.
This disposal completes the sale of non core areas.
SSL remains the leading branded condom manufacturer and
distributor in the world, with condom manufacturing facilities in
Thailand, Spain, India, China and the UK.
Footcare technology sharing agreement
SSL announces that it has entered into a long term technology
sharing and licensing agreement with Schering-Plough HealthCare
Products Inc ('SPHCP') for the development of new footcare
Under the agreement, new products developed by either party will
be available for sale by the other party in the relevant market
subject to a royalty payment. As part of the agreement, SSL has
paid a know-how licence fee of US$10 million to SPHCP.
Sale of Scholl brand in Latin America
SSL has also sold the rights to the Scholl brand in Latin America
to SPHCP. SSL will close its commercial facilities in Brazil and
Argentina, but will retain commercial operations in Mexico to
support other businesses.
Commenting on the technology sharing agreement and the sale of
the Scholl rights in Latin America, Stuart Wallis, Chairman of
'We have long admired SPHCP's innovations in footcare, and we
believe that this long term agreement will benefit both parties,
allowing new Scholl products to be introduced to the global
market more efficiently and with faster lead times.
'Our post-merger strategy review revealed that the Scholl brand
in Latin America is difficult to sustain without the selling
rights in North America. The sale will allow SPHCP to exploit
the brand in the whole of the Americas, and will enable us to
concentrate on developing the Scholl brand in the rest of the
The consideration for the sale of the brand was US$10 million.
Sales of Scholl products in Latin America for the thirteen month
period ended 31 March 2000 were US$6.3 million.
For further information, please contact:
SSL International plc
Stuart Wallis, Chairman 020 7426 4680
Iain Cater, Chief Executive 01565 624000
Paul Sanders, Finance Director 01565 624000
Square Mile Communications
Louise Robson/Carys Jones 020 7601 1000