Non-Core Business Disposals

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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