Reckitt Benckiser announced that it is to acquire SSL International, the consumer products company that markets Durex and Scholl, as well as a number of other leading brands. The acquisition deal values SSL at £2.5 billion. The acqusition of SSL provides a broadening of Reckitt Benckiser's global health and personal care business, and will increase net revenues in this segment by 36% to more than £2.8 billion.

SSL's product Durex is the global number one condom brand and Scholl is the leading brand in the footcare category in several markets. SSL's local brands, sold predominantly in Europe, include Mister Baby, Sauber, Silkoplast, Meltus, Medised and Paramol. Reckitt Benckiser will leverage its brand building capabilities and drive benefit through its greater distribution strength.

Reckitt Benckiser is principally engaged in the manufacturing and marketing of household, cleaning, health and personal care products. The company manufactures products related to several categories which include dishwashing, fabric care, surface care, health, home care and personal care products and food. The company operates through 60 operating companies across 180 countries. The acquisition of SSL provides Reckitt Benckiser with an attractive opportunity to increase its presence in the health & personal care sector.

SSL International plc (SSL) is engaged in manufacturing and distributing healthcare products to the consumer markets worldwide. It provides products to more than 130 countries under various brands like Durex and Scholl. The company is headquartered in London, the UK.SSL has operations in over 30 countries across Europe, Asia Pacific and the Americas, sells into over 100 countries worldwide, and has manufacturing operations in India, Thailand, China and the UK. SSL employs approximately 10,000 people globally. For the year ended 31 March 2010, SSL reported sales of £802.5 million and operating profit of £126.0 million.

Author: Paul Chapman, Analyst