9th Sep 2013 07:46
LONDON (Alliance News) - GlaxoSmithKline PLC Monday confirmed that it has sold its Lucozade and Riben drink brands to Suntory Beverage & Food Ltd of Japan for GBP1.35 billion, after putting the brands up for sale in April so that it can focus on healthcare brands.
It expects net proceeds to be about GBP1.3 million after tax, fees and costs, and will use the money to reduce debt and for general corporate purposes.
Sales of energy drink brand Lucozade and blackcurrant cordial Ribena were about GBP500 million in 2012.
As part of the deal, Suntory will acquire the Coleford manufacturing site in the Forest of Dean in the UK. Glaxo will continue to manufacture and distribute Lucozade and Ribena in Nigeria under license from Suntory.
"Lucozade and Ribena are iconic brands that have made a huge contribution to GSK over the years, but now is the right time to sell them as we increase the focus of our Consumer Healthcare business and execute the delivery of our late stage pipeline of pharmaceuticals and vaccines," Glaxo's Chief Strategy Officer David Redfern said in a statement.
Suntory owns brands like Orangina and also owns liquor and wine brands.
GlaxoSmithKline shares were down 0.4% at 1,644 pence early Monday.
By Steve McGrath; [email protected]; @SteveMcGrath1
Copyright 2013 Alliance News Limited. All Rights Reserved.
Related Shares:
Glaxosmithkline