Reckitt buys Durex maker SSL

CONSUMER goods group Reckitt Benckiser is to buy Durex condoms and Scholl sandals maker SSL for 2.5 billion pounds (US$3.8 billion) to increase its presence in health and personal care.

The maker of Nurofen painkillers, Strepsils and Lemsip cold remedies is paying 1,171 pence per SSL International share, representing a 33 percent premium to Tuesday's closing price. The price includes the 8 pence final dividend.

Reckitt's health and personal care business has been a key driver of its growth, and Chief Executive Bart Becht said the acquisition should increase the group's health and personal care net revenues by over 36 percent.

The deal would also provide a step change in the size of its business in China and Japan, Reckitt said, adding it expected savings of about 100 million pounds a year.