GSK may raise £1bn in sale of drink brands
GLAXOSMITHKLINE is to sell soft drink brands Lucozade and Ribena in a move analysts believe will raise over £1bn and focus its consumer health business on global products.
The plan was announced yesterday alongside first-quarter results that saw sales at Britain’s biggest drugmaker drop a slightly smaller-than-expected 3 per cent from a year ago. GSK launched a strategic review of the two drink brands earlier this year, ruling nothing in or out for their future.
Most analysts had focused on the idea of a sale, which is likely to attract interest from private equity and trade buyers. CEO Andrew Witty said there had been significant interest in the products, though the decision to pursue a sale was “subject to appropriate value realisation”.
Lucozade was launched in 1927 and Ribena a decade later.