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EXHIBIT 99
PRESS RELEASE
SMITHKLINE BEECHAM TO PURCHASE BLOCK DRUG
FOR $1.24 BILLION
ACQUISITION TO EXPAND SB'S PRESENCE IN ORAL HEALTHCARE AND
OVER-THE-COUNTER MEDICINES (OTCs)
LONDON 9 OCTOBER 2000 - SmithKline Beecham (SB) and Block Drug Company, Inc
announced today that agreements have been signed for SB to acquire Block Drug,
the manufacturer of Sensodyne toothpaste and other oral healthcare and consumer
products, for $1.24 billion.
The transaction is being effected as a cash tender offer for all of the
outstanding common stock of Block Drug, with an offer price of $53 per share. In
connection with the agreement, SB has received commitments from holders of 100
per cent of the Class B (voting) Common shares and 52 per cent of the Class A
(non-voting) Common shares to tender into the offer. The acquisition will be
funded by SB from existing loan facilities.
Completion of the transaction is subject to regulatory clearance, including in
the US and Europe. It is anticipated that the transaction will have no impact on
the timing of the merger of SB and Glaxo Wellcome.
Commenting on the announcement, SB Chief Executive Officer JP Garnier said:
"This acquisition will significantly enhance SB's Consumer Healthcare business,
which is a key part of our strategy for corporate growth. Block Drug offers an
excellent fit with our global oral healthcare and OTC business. It will add to
our scale in many important markets around the world and is expected to enhance
earnings per share (excluding exceptional items and currency) in the first full
year following the completion of the transaction."
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BLOCK DRUG
In addition to Sensodyne, Block Drug's products include Polident/Corega denture
cleanser, Poli-Grip/Corega denture adhesive, and a number of OTC brands. For
fiscal year 2000, ending 31 March, Block Drug reported net income of $56.8
million on sales of $864.3 million.
Block Drug is a global company with geographic sales well balanced across North
America, Europe and International markets, including Japan. With headquarters in
Jersey City, New Jersey, the company has operations in over 100 countries and
employs approximately 3,000 people in R&D, sales and marketing, manufacturing
and distribution. Block derives 73 per cent of sales from the oral healthcare
brands and 27 per cent from over-the-counter medicines.
SMITHKLINE BEECHAM CONSUMER HEALTHCARE
SmithKline Beecham's Consumer Healthcare sales in 1999 were $4.1 billion.
Consumer healthcare accounts for approximately one third of the group's total
sales. SB's oral healthcare brands include AQUAFRESH and ODOL. Other key
products include the smoking cessation brands: NICORETTE, NICODERM CQ and
NIQUITIN CQ, TUMS antacid, PANADOL analgesic and the RIBENA, LUCOZADE and
HORLICKS nutritional drinks.
SmithKline Beecham has been advised in this transaction by Lehman Brothers.
SmithKline Beecham - one of the world's leading healthcare companies -
discovers, develops, manufactures and markets pharmaceuticals, vaccines,
over-the-counter medicines and health-related consumer products. For company
information, visit SmithKline Beecham on the World Wide Web at http://www.sb.com
