Acquisition(s)

RECKITT BENCKISER GROUP PLC - Acquisition(s)

PR Newswire

London, February 12

12 February 2012

Slough, England - 12 February, 2012 - Reckitt Benckiser Group PLC ("RB") (LSE:RBL) today announced that it has signed a three year collaboration agreementwith Bristol-Myers Squibb ("BMS") for a number of market-leadingover-the-counter ("OTC") consumer health care brands in Brazil, Mexico andcertain other parts of Latin America (collectively "BMS Assets"), with anoption to purchase at the end of the three year period. The key brands includedunder the agreement are:

Under this collaboration, RB will licence the brands from BMS, who willcontinue to manufacture them for three years.

Rakesh Kapoor, Reckitt Benckiser Chief Executive Officer, said,

"This transaction creates a material consumer health care platform,infrastructure and distribution network for RB in both Brazil and Mexico. Assuch it is an important step in building our consumer health care presence inLatin American emerging markets.

"These market-leading brands have strong margins and I firmly believe they haveextremely good growth potential. They fit into our existing OTC categories ofpain relief, sore throat, cough and cold, anti-acid, and dermatological andwill benefit from RB's consumer marketing and innovation capabilities, and oursignificant levels of brand equity investment."

Under the terms of the agreement RB will initially pay BMS $482 million toenter into the arrangement which also includes personnel, supply contracts andan option to acquire legal title to the related intellectual property at theend of the collaboration period, based on business performance. The transactionwill be accounted for as a business combination and the Directors are in theprocess of revaluing the assets and liabilities acquired to fair value,including the value of any acquired intangible assets. Under the terms of aseparate supply agreement BMS will be RB's supplier of the products during thecollaboration period.

BMS Assets had unaudited reported net revenue for the year ended 31 December2012 of $102 million.

We expect the transaction to be EPS* accretive from 2014 under IFRS. Excludingthe amortization we expect it to be immediately EPS* accretive(1).

The collaboration will come into effect following regulatory approvals,including anti-trust approvals in the relevant jurisdictions. This is expectedto be completed in Q2 2013.

*Adjusted results exclude the impact of exceptional items

(1) Under IFRS a fair value of the collaboration agreement is required to becalculated and amortized over the collaboration period.

About Reckitt Benckiser

Reckitt Benckiser (RB) is a global consumer goods leader in health, hygiene andhome, listed on the London Stock Exchange (LSE). With a purpose of deliveringinnovative solutions for healthier lives and happier homes, RB is in the top 25of companies listed on the LSE. Since 2000 net revenues have more than doubledand the market cap has quadrupled. Today it is the global No 1 or No 2 in themajority of its fast-growing categories, driven by an exceptional rate ofinnovation. Its health, hygiene and home portfolio is led by 19 globalPowerbrands including Nurofen, Strepsils Gaviscon, Mucinex, Durex, Scholl,Lysol, Dettol, Clearasil, Veet, Harpic, Bang, Mortein, Finish, Vanish, Woolite,Calgon, Airwick, and French's, and they account for 70% of net revenue.

RB people and its culture are at the heart of the company's success. They havean intense drive for achievement and a desire to outperform wherever theyfocus, including in CSR where the company has reduced its carbon footprint by20% in 5 years and is now targeting to deliver a 1/3 reduction in water use, 1/3 further reduction in carbon and have 1/3 of its net revenue coming from moresustainable products by 2020. It is also the Save the Children charity'slargest FMCG global partner.

The company has operations in over 60 countries, with headquarters in the UK,Singapore, Dubai and Amsterdam, and sales in almost 200 countries. The Companyemploys approximately 32,000 people worldwide. For more information visitwww.rb.com

Forward-Looking Statements

Statements herein regarding the proposed transaction between Reckitt Benckiserand BMS, future financial and operating results and any other statements aboutfuture expectations constitute "forward looking statements." These forwardlooking statements may be identified by words such as "believe," "expects,""anticipates," "projects," "intends," "should," "estimates" or similarexpressions. Such statements are based upon current beliefs and expectationsand are subject to significant risks and uncertainties. There are a number ofimportant factors that could cause actual results or events to differmaterially from those indicated by such forward looking statements. We believethese forward-looking statements are reasonable; however, undue reliance shouldnot be placed on any forward-looking statements, which are based on currentexpectations. All written and oral forward-looking statements attributable tous or persons acting on our behalf are qualified in their entirety by thesecautionary statements. Further, forward-looking statements speak only as of thedate they are made, and we undertake no obligation to update or reviseforward-looking statements to reflect changed assumptions, the occurrence ofunanticipated events or changes to future operating results over time unlessrequired by law.