Reckitt Benckiser plc (RB.L) has acquired Boots Healthcare International (BHI) from Boots Group PLC for a consideration of £1,926 million in cash.

BHI is a consumer healthcare business largely selling over the counter products. In the year to March 2005, BHI reported net revenues of £523m (+4% on 2004) and Operating Profit of £88m (+9% on 2004). At 31st March 2005, BHI reported net assets of £454m. BHI financials will be restated onto Reckitt Benckiser policies by February 2006.

Commenting on the acquisition, Bart Becht, chief executive officer of Reckitt Benckiser said: -"BHI will add 3 Power Brands to Reckitt Benckiser's portfolio; Nurofen in analgesics; Strepsils in sore throat; and Clearasil in anti-acne. All three brands are already global leaders and have substantial further growth potential. To realise that potential, Reckitt Benckiser will continue to invest behind BHI's proven R&D and brand development capabilities and use its own distribution capabilities to drive growth in new channels and new countries."

"BHI will substantially strengthen Reckitt Benckiser's global position in both Health Care and Personal Care, very attractive businesses as evidenced by the strong growth rates at good margins at both BHI and Reckitt Benckiser's own Health & Personal Care (H&PC) category. Combined H&PC revenues will exceed £1bn, an increase of 90%, and will represent 26% of the enlarged Reckitt Benckiser," he added.

"Substantial synergies will result from the integration of BHI into Reckitt Benckiser. Specifically, Reckitt Benckiser targets £75m in cost synergies and £130m in net working capital synergies by 2008. The prospect that the deal is targeted to be immediately earnings enhancing (excluding the £150m one off restructuring) combined with the growth potential and attractive margin profile makes this a good acquisition for shareholders," he concluded.