GlaxoSmithKline to sell Lucozade and Ribena brands

By Laurence Gibbons

- Last updated on GMT

Related tags: Glaxosmithkline

Lucozade and Ribena are estimated to be for sale for £766M
Lucozade and Ribena are estimated to be for sale for £766M
GlaxoSmithKline (GSK) has announced it is to sell its soft drink brands Lucozade and Ribena, in a bid to improve its strategic focus and enhance its growth profile.

Andrew Witty, ceo of GSK, said following a “strategic review”​ of the brands the company had concluded that the “tremendous growth potential” ​of the brands, particularly outside core western markets could be “better leveraged by companies with existing category presence”​.

As a result, the pharmaceuticals group has decided to pursue the divestment of the soft drink brands, subject to an appropriate valuation for GSK shareholders, Witty added.

Estimated £766M price

Speculation that GSK were planning to sell off the brands  ̶  for an estimated £766M  ̶  first rose in March as the most likely outcome of the strategic review.

The Lucozade and Ribena brands are said to contribute a large part of the company’s turnover, which was worth £1bn last year.

The plan was announced alongside GSK’s first quarter results which saw sales fall by 2%. The firm also posted core earnings per share of 26.9p and dividend of 18p.

GSK reiterated its 2013 expectations for sales growth of around 1% and core earnings per share growth of 3 ̶ 4%.  

Related topics: Drinks

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