Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  London Stock Exchange  >  GlaxoSmithKline    GSK   GB0009252882

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets

GlaxoSmithKline plc : GlaxoSmithKline provides update on divestment of non-core over-the-counter (OTC) brands

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/20/2011 | 02:58pm CEST

This press release is intended for business journalists and analysts/investors. Please note that this release may not have been issued in every market in which GSK operates.

Issued: Tuesday 20 December 2011, London UK

Agreement reached to divest brands in USA and Canada to Prestige Brands Holdings, Inc. for £426m ($660m). Process continues for divesting brands outside these markets and global rights for alli

In February 2011 GSK announced its intention to divest non-core Consumer Healthcare OTC products predominantly in the United States and Europe with aggregate annual sales of approximately £500 million. The proposed divestment is designed to realise value for shareholders and simplify GSK's Consumer Healthcare business and allow it to focus on its priority brands and markets.

Brands in USA and Canada
GSK today announced that it has reached agreement to divest the previously identified non-core OTC brands in the United States and Canada to Prestige Brands Holdings, Inc. for £426 million ($660 million) in cash.

The brands being divested include BC, Goody's, Beano, Ecotrin, Fiber Choice and Tagamet and generated sales of approximately £134 million in 2010 and £98 million in the first 9 months of 2011. It is expected the divestment will complete in H1 2012, subject to regulatory approvals.

The net cash proceeds from the transaction are expected to be approximately £242 million. These will be returned to shareholders during 2012.

The net profit on disposal of the assets (including all transaction costs) is estimated to be approximately £240 million (pre-tax), £145 million (post-tax). The pre-tax profit will be recorded in Other Operating Income following completion of the disposal.

Brands outside USA and Canada and global rights for alli
The process for divestment of the remaining brands continues. These assets generated sales of approximately £400 million in 2010 and £262 million in the first nine months of 2011. The company also plans to return any net proceeds from the sale of these brands to shareholders.

GSK's Chief Financial Officer, Simon Dingemans said: "The disposal of our non-core consumer brands is about realising attractive value for shareholders as well as simplifying our ongoing Consumer business and allowing it to focus on its priority brands and markets. I am pleased that we have achieved such a good result for our US and Canadian assets, especially in such difficult market conditions. Active discussions continue with other potential buyers for the remaining assets."

About Prestige Brands Holdings, Inc.
Prestige Brands Holdings, Inc. is engaged in the marketing, sale and distribution of brand name over-the-counter healthcare products and household cleaning products. Its products are sold in chain and independent drug stores, supermarkets, and mass merchandisers throughout the United States and Canada, and selected international markets. The Company is headquartered in Irvington, New York, with business offices in Jackson, Wyoming.

GlaxoSmithKline - one of the world's leading research-based pharmaceutical and healthcare companies - is committed to improving the quality of human life by enabling people to do more, feel better and live longer. For further information please visit

GlaxoSmithKline Enquiries:

UK Media enquiries:

David Mawdsley

+44 (0) 20 8047 5502

(London)

Stephen Rea

+44 (0) 20 8047 5502

(London)

Sarah Spencer

+44 (0) 20 8047 5502

(London)

David Daley

+44 (0) 20 8047 5502

(London)

US Media enquiries:

Kevin Colgan

+1 919 483 2839

(North Carolina)

Mary Anne Rhyne

+1 919 483 2839

(North Carolina)

Sarah Alspach

+1 919 483 2839

(Washington, DC)

Jennifer Armstrong

+1 919 483 2839

(Philadelphia)

Analyst/Investor enquiries:

Sally Ferguson

+44 (0) 20 8047 5543

(London)

Tom Curry

+ 1 215 751 5419

(Philadelphia)

Gary Davies

+ 44 (0) 20 8047 5503

(London)

Ziba Shamsi

+ 44 (0) 20 8047 3289

(London)

Jeff McLaughlin

+ 1 215 751 7002

(Philadelphia)

Cautionary statement regarding forward-looking statements
Under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, GSK cautions investors that any forward-looking statements or projections made by GSK, including those made in this announcement, are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Factors that may affect GSK' s operations are described under 'Risk Factors' in the 'Business Review' in the company' s Annual Report on Form 20-F for 2010.



share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on GLAXOSMITHKLINE
08/15 GLAXOSMITHKLINE PLC. (ADR)(NYSE : GSK) Restructuring Takes A Toll on Ionis Pharm..
08/14 Featured Company News – GlaxoSmithKline Drops Options to Licence Inoter..
08/11 GLAXOSMITHKLINE PLC (ADR) (NYSE : GSK) And Rolls Royce To Expect UK Fraud Office..
08/10 Income investors run for cover as dependable UK dividends in jeopardy
08/10 Worst day in four months for FTSE as ex-divs, housebuilders weigh
08/10 GLAXOSMITHKLINE : Studies from GlaxoSmithKline plc Provide New Data on Pharmacog..
08/10DJMylan Cuts View On Drug Delays -- WSJ
08/10 GLAXOSMITHKLINE : ex-dividend day for interim dividend
08/09DJMylan Defers Product Launches -- 3rd Update
08/09DJMylan Defers Product Launches -- 2nd Update
More news
News from SeekingAlpha
12:12p Biogen's Alzheimer's Hope Tops The Sector's Most Valuable Pipeline Projects
08/15 BRISTOL-MYERS SQUIBB : HIV Franchise Was Never A Big Part Of The Game Plan
08/14 Gilead's Newer Tenofovir Patents Might Aid Its HIV Franchise
08/14 Ionis Absorbs Glaxo Rare Disease Cull
08/14 3 THINGS IN BIOTECH YOU SHOULD LEARN : August 14, 2017
Financials ( GBP)
Sales 2017 30 168 M
EBIT 2017 8 507 M
Net income 2017 4 165 M
Debt 2017 14 104 M
Yield 2017 5,35%
P/E ratio 2017 19,50
P/E ratio 2018 15,83
EV / Sales 2017 2,90x
EV / Sales 2018 2,81x
Capitalization 73 507 M
Chart GLAXOSMITHKLINE
Duration : Period :
GlaxoSmithKline Technical Analysis Chart | GSK | GB0009252882 | 4-Traders
Technical analysis trends GLAXOSMITHKLINE
Short TermMid-TermLong Term
TrendsBearishBearishNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 30
Average target price 17,4  GBP
Spread / Average Target 17%
EPS Revisions
Managers
NameTitle
Emma Walmsley Chief Executive Officer & Executive Director
Philip Roy Hampton Non-Executive Chairman
Simon Dingemans Chief Financial Officer & Executive Director
Patrick J. T. Vallance Executive Director, President-R&D
Roy Malcolm Anderson Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
GLAXOSMITHKLINE-4.32%94 564
JOHNSON & JOHNSON15.77%357 992
NOVARTIS9.99%219 731
ROCHE HOLDING LTD.5.07%217 452
PFIZER2.77%198 782
MERCK AND COMPANY6.17%170 460