SSL International Agrees to Sell Antiseptics and Surgical Gloves Business for £173m

Strategic Insights -

SSL International, the company behind Durex condoms and Dr Scholl sandals, has agreed to sell its antiseptics and surgical gloves business to a management team backed by Apax, in a deal worth £173m. This sale marks the third and final step in SSL's break-up, which has raised £250m to reduce debts through the sale of its medical and industrial businesses. The disposal is expected to generate a £50m profit, but may not be the end of the company's turbulent story, with a larger rival potentially interested in acquiring the consumer health-focused group.

Key Takeaways:

  • SSL has agreed to sell its antiseptics and surgical gloves business to Apax-backed management team for £173m, including £10m of assumed debt.
  • The sale is expected to generate a £50m profit, and marks the third step in SSL's break-up, which has raised £250m to reduce debts.
  • The disposal has been in the works for months, with SSL initially seeking as much as £250m for the unit, but reduced its asking price due to the weak dollar.
  • Apax stepped in to back the management buy-out after 3i, a rival private equity group, walked away from talks amid a disagreement over the price.
  • SSL's new CEO, Garry Watts, has stated that the company is not for sale, but admits that there are questions over its independence if profits do not improve following the restructuring.
  • SSL is expected to report profits of £69.5m before goodwill amortisation and exceptional charges, compared to profits of £63.2m before charges and amortisation last time.

Statistics:

  • £173m: the sale price of SSL's antiseptics and surgical gloves business.
  • £10m: the amount of assumed debt included in the sale price.
  • £50m: the profit generated by the sale.
  • £250m: the total amount raised by SSL's break-up to reduce debts.
  • £69.5m: SSL's expected profits before goodwill amortisation and exceptional charges.
  • £63.2m: SSL's profits before charges and amortisation last time.
  • £45.2m: the expected exceptional charges.
  • £5m: the exceptional charges included in SSL's previous profits.

Sources:

  • "SSL agrees £173m MBO deal" by [Author] at [Publication], [Date]
  • "SSL reports profits of £69.5m" by [Author] at [Publication], [Date]