?1.926bn Boots Healthcare acquisition

Reckitt Benckiser has completed its acquisition of Boots Healthcare International (BHI).

The deal worth ?1.926 billion officially came into effect yesterday.

Reckitt Benckiser chief executive Bart Becht said: “We are excited at getting ownership of BHI. It will give us a platform for additional growth at very attractive margins.

“BHI brings three new power brands in Nurofen, Strepsils and Clearasil whose distribution can be substantially expanded over time.

“In 2006, our major focus for this business will be on successful integration and extracting the promised synergies while gradually preparing the business for growth.”

Boots will use ?400 million of the money from the deal to finance the additional payment of ?85m into the firm’s pension scheme and fund its programme of improving stores and reducing structural costs.

The remaining ?1.43 billion will be returned to shareholders.

Reckitt Benckiser, maker of Gaviscon and Lemsip, now estimates that revenues of the combined health and personal care business will exceed ?1 billion.

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