GlaxoSmithKline has announced an agreement with Japanese consumer goods company Suntory to sell off its Lucozade and Ribena businesses for £1.35bn (release).
Combined sales of the two brands saw annual sales of £0.5bn
GSK's Consumer Healthcare business has been increasing its focus around a core portfolio of healthcare brands, with a particular emphasis on emerging markets. As part of this, the company initiated a strategic review of Lucozade and Ribena in February 2013 and subsequently announced its decision to divest the brands, subject to the realisation of appropriate shareholder value.
David Redfern, 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 and execute the delivery of our late stage pipeline of pharmaceuticals and vaccines.