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Reckitt Benckiser Adding Two 'Powerbrands' To Its Arsenal

Consumer goods group Reckitt Benckiser is buying SSL International, the maker of Durex (DUrability, Reliability and EXcellence) condoms and Scholl sandals maker, for $3.8 billion, Paul Sandle reports. Reckitt CEO Bart Becht expects the deal to increase the group's health and personal care net revenues by more than 36%.

"Durex, in the sexual well-being category, is the global No. 1 condom brand and Scholl is the market leader in the foot care category in many of the markets where it is present," he says. Counterbidders such as Johnson & Johnson or GlaxoSmithKline could step in but analysts suggest that's unlikely because Reckitt is offering a 64% premium to the average share price over the last 12 months.

"The acquisition will add two new Powerbrands, with good further growth potential, to Reckitt Benckiser's current arsenal, making 19 Powerbrands in total," says Becht. The Guardian has a slide show and brief history http://www.guardian.co.uk/business/gallery/2010/jul/21/reckitt-benckiser-ssl-brands of some of the company's best-known brands.

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