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| Lucozade and Ribena sold to Suntory for £1.35bn | |
| (about 1 hour later) | |
| The Lucozade and Ribena drinks brands have been sold by GlaxoSmithKline (GSK) to Japanese firm Suntory for £1.35bn. | The Lucozade and Ribena drinks brands have been sold by GlaxoSmithKline (GSK) to Japanese firm Suntory for £1.35bn. |
| Suntory already owns beverage firm Orangina Schweppes, and the deal is expected to help it expand into new markets. | Suntory already owns beverage firm Orangina Schweppes, and the deal is expected to help it expand into new markets. |
| The deal was widely expected after Suntory was reported to be in talks with GSK last week. | The deal was widely expected after Suntory was reported to be in talks with GSK last week. |
| GSK chose to get rid of the well-known UK brands after deciding to focus on its core pharmaceuticals business. | GSK chose to get rid of the well-known UK brands after deciding to focus on its core pharmaceuticals business. |
| Ribena and Lucozade saw combined sales totalling about £500m last year, but GSK decided to offload the brands in April following a strategic review. | |
| In a statement, David Redfern, GSK's chief strategy officer said: "Lucozade and Ribena are iconic brands that have made a huge contribution to GSK over the years, but now is the right time to sell them as we increase the focus of our consumer healthcare business. | |
| "We believe the future of Lucozade and Ribena is in good hands given [Suntory's] established beverages business, ambitious growth plans and also their recognition of the strong performance and capability of the GSK employees working on these products." | |
| Global expansion | |
| Although well-known in the UK, both brands are less recognised abroad, particularly in the emerging economies where GSK sees its growth markets. | Although well-known in the UK, both brands are less recognised abroad, particularly in the emerging economies where GSK sees its growth markets. |
| Ribena first went on sale in the 1930s, while Lucozade dates back to 1927. Both are made in the UK in Coleford, Gloucestershire. | |
| GSK said the "vast majority" of employees at the site and those working on Lucozade and Ribena in commercial and research and development functions will be offered transfers to Suntory. | |
| Suntory has sought to expand globally in recent years from its base in Japan, where it has seen sluggish growth in sales. | Suntory has sought to expand globally in recent years from its base in Japan, where it has seen sluggish growth in sales. |
| It established its presence in Europe just four years ago with its purchase of Orangina Schweppes for 2.6bn euros (£2.2bn). | It established its presence in Europe just four years ago with its purchase of Orangina Schweppes for 2.6bn euros (£2.2bn). |
| The purchase of Ribena and Lucozade pre-empted a possible auction of the brands, with private equity firms, such as Blackstone and Lion Capital, and Irn-Bru maker AG Barr all reported to be considering bids. | The purchase of Ribena and Lucozade pre-empted a possible auction of the brands, with private equity firms, such as Blackstone and Lion Capital, and Irn-Bru maker AG Barr all reported to be considering bids. |
| Suntory was helped by a flotation on the stock market earlier this year that raised $4bn (£2.6bn). | Suntory was helped by a flotation on the stock market earlier this year that raised $4bn (£2.6bn). |
| GSK said it expected the sale to be completed by the end of the year. | GSK said it expected the sale to be completed by the end of the year. |