Reckitt Benckiser PLC
3 August 2000
Reckitt Benckiser Disposes of Non-Core Businesses
Reckitt Benckiser plc, the world's leading household
cleaning company, today announces that it has completed a
number of disposals of non-core businesses and companies as
part of its earlier announced strategy of focusing on its
five core categories, Fabric Care, Surface Care, Health &
Personal Care, Dishwashing and Home Care. The businesses
sold are:
* Undesa (Spain) and Mirachem (Italy), two companies
which together comprise the fatty acids (oleo
chemicals) business, have been sold to a group of
financial buyers in Spain. The businesses are one of
the main European manufacturers of fatty acids and
derivative products with annual output of around
100,000 tonnes. The companies own three factories, two
in Spain and one in Italy.
* Epilim, the prescription anti-epileptic, where Reckitt
Benckiser had ownership in Australia, New Zealand,
South Africa, Pakistan and Sri Lanka, has been sold to
the international Pharmaceutical group, Sanofi-
Sythelabo which already owned the brand in the rest of
the World. Epilim had been commercialised through a
distribution agreement with Sanofi-Synthelabo who will
now have complete ownership.
* Various personal care items in Australia, including
hair care and other products, have been sold to a
number of buyers. This includes Decore and a number of
other hair care products that have been sold to Wella.
These transactions bring the disposals to date, including
Scrub Free and Delicare which were sold earlier, to between
£75m and £80m of 1999 Net Revenues producing operating
income of £14m. Proceeds from the program to date amount to
almost £80m.
Commenting on these disposals, Bart Becht, Chief Executive
Officer, said 'Rationalising the tail of non-core, non-
strategic businesses was a key commitment when we merged to
create Reckitt Benckiser. So far we have already sold
around a third of the total potential non-core list. We
have consistently said that selling half would be a very
good result. We may yet achieve that. We believe selling
these businesses is very positive, despite the modest
earnings dilution, as it allows substantially greater focus
and results in a much stronger, more growth-oriented brand
portfolio.'
For further information
Tom Corran Telephone + 44 1753 746 548
SVP Corporate Communications Facsimile + 44 1753 746 415
Bobby Leach Telephone + 44 207 329 0096
Shandwick International
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