Issued: Friday 28 March 2014, London UK
GlaxoSmithKline (GSK) has acquired full ownership of its Indonesian Consumer Healthcare business in a transaction which also includes the company divesting a non-core brand and a manufacturing facility in the country.
The transaction is with three connected entities. GSK Consumer Healthcare Pte. Ltd has paid IDR 465 billion (£24.6 million) to Sarasvati Venture Capital Ltd (SVC) for the 30 per cent of the Indonesian Consumer Healthcare business it did not previously own. GSK has also divested its Insto™ eye drops brand to Pharma Healthcare Pte. Ltd and agreed to divest its manufacturing site at Bogor, Indonesia, to PT Pharma Healthcare for a combined total of IDR 133 billion (£7 million).
David Redfern, GSK Chief Strategy Officer, said: “This transaction is a further example of GSK focusing its business in strategically important growth markets such as Indonesia. It will also simplify operations in the Indonesian business.”
The transaction will complete in two stages. GSK has completed the purchase of the shares and the divestment of the Insto brand. The Bogor manufacturing site will transfer to PT Pharma Healthcare in 2015.
GSK’s Indonesian Consumer Healthcare business sells brands such as Panadol™, Sensodyne™ and Scotts™, and is an important emerging markets business for GSK. It has seen significant growth over the last five years, with net sales reaching close to £50 million in 2013 in comparison to around £16 million in 2008. With increased geographical coverage and by using targeted product innovation serving a fast-expanding middle class, the future prospects for the business are strong.
Insto eye drops are manufactured at the Bogor site and the brand is only sold in Indonesia. GSK will continue to sell the same formulation under the brandEyemo™ across a number of other emerging markets, which are unaffected by this transaction.
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Cautionary statement regarding forward-looking statements
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. Such factors include, but are not limited to, those described under Item 3.D ‘Risk factors’ in the company’s Annual Report on Form 20-F for 2013.