GLAXOSMITHKLINE, the pharmaceuticals giant, yesterday appointed Greenhill and JP Morgan to advise on the sale of its Lucozade and Ribena drinks business, sources said.
The two banks were appointed after a pitch from around 20 investment banks keen to work on a sale which industry sources say could generate around £1.5bn. There was fierce competition for the mandate, given the paucity of traditional mergers and acquisition deals currently in the market.
Greenhill, an independent boutique, is advising on Tesco’s sale of Fresh & Easy in the US, while JP Morgan regularly features in UK bids and deals due to its pre-eminent position in the FTSE 100 broking market.
Ribena and Lucozade produced sales for GSK of about £600m last year, but the company decided this year to review their future in the business, given their concentration in the UK and their weaker health-related links than its other products.
Glaxo held its annual shareholders’ meeting yesterday.