Issued: 16th January 2001, London
GLAXOSMITHKLINE COMPLETES THE PURCHASE OF BLOCK DRUG FOR
$1.24 BILLION
Acquisition expands GlaxoSmithKline's presence in oral healthcare and
over-the-counter medicines
GlaxoSmithKline plc (GSK) today announced the successful completion of its
acquisition of Block Drug Company, Inc., the manufacturer of Sensodyne
toothpaste and other oral healthcare and consumer products, for $1.24 billion.
"This acquisition will significantly enhance our Consumer Healthcare business,
putting GSK among the top three consumer healthcare companies in the world, and
number two in oral healthcare" said Jean-Pierre Garnier, Chief Executive
Officer, GlaxoSmithKline.
The Block Drug portfolio of oral healthcare and over-the-counter (OTC) products
is expected to add approximately $900 million in annual sales to GSK's global
oral healthcare and OTC businesses, increasing GSK's consumer healthcare sales
to nearly $5 billion. In addition to Sensodyne, Block Drug's products include
Polident/Corega denture cleansers, Poli-Grip/Corega denture adhesive, and a
number of other OTC brands.
Block Drug has geographic sales well balanced across North America, Europe and
International markets, including Japan. With operations in over 100 countries,
the company employs approximately 3,000 people in R&D, sales and marketing,
manufacturing and distribution.
GlaxoSmithKline's pro forma consumer healthcare sales for the first half of 2000
were (pound)1.3 billion, approximately 15 per cent of the group's total sales.
With Block Drug, GSK has 12 brands with annual sales over $100 million and
household brand names in 130 countries. 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.
GlaxoSmithKline - one of the world's leading research-based pharmaceutical and
healthcare companies - is committed to improving the quality of human life by
enabling people to do more, feel better and live longer.
Approximately 14,319,496 shares of Class A common stock (including 174,556
shares tendered by guaranteed delivery) and 8,671,372 shares of Class B common
stock, or approximately 98.5 per cent and 100 per cent, respectively, of the
Class A and Class B common stock of Block Drug were validly tendered prior to
the expiration of the tender offer at 5:00 p.m., New York City time, on Friday
12th January 2001, and were accepted for payment. In accordance with the terms
of the merger agreement with Block Drug, SB Acquisition Corp. will merge into
Block Drug, and each share of Block Drug common stock not previously purchased
in the tender offer will be converted into the right to receive the same $53.00
per share price as offered in the tender offer.
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Enquiries:
UK Media enquiries Martin Sutton (020) 8966 8000
Philip Thomson (020) 8966 8000
Alan Chandler (020) 8975 2290
Neil McCrae (020) 8975 2536
US Media enquiries Jeremy Heymsfeld (215) 751 5166
Mary Anne Rhyne (919) 483 2839
European Analyst/Investor enquiries Jennie Younger (020) 8966 8378
Duncan Learmouth (020) 8966 5961
Joan Toohill (020) 8966 8715
Anita Kidgell (020) 8966 8369
US Analyst/ Investor enquiries Frank Murdolo (212) 308 5185
Tom Curry (215) 751 5419
Jennie Younger (020) 8966 8378
Website address www.gsk.com
This press release contains forward-looking statements. GlaxoSmithKline cautions
investors that such statements are subject to risks and uncertainties that may
cause actual results to differ materially from those projected.
