UK: Lucozade, Ribena up for sale - GlaxoSmithKline
GSK launched a review of the brands this year
GlaxoSmithKline (GSK) has put Lucozade and Ribena up for sale, saying other beverage companies will have a better chance of turning a profit from the brands.
The announcement today (April 24) follows a two-month “strategic review” of the brands, during which GSK said it was considering its options. The decision to sell was revealed alongside GSK's first-quarter results, which saw Ribena sales increase by 2% year-on-year, but Lucozade saled fell by 2%.
“The tremendous growth potential of these iconic brands, particularly outside the core Western markets, could be better leveraged by companies with existing category presence and infrastructure in these regions," the company said. "We have decided to pursue the divestment of these brands, subject to the realisation of appropriate value.”
This month, an analyst said The Coca-Cola Co could be interested in buying Lucozade as a competitor to PepsiCo's Gatorade brand, while Suntory is also a potential suitor. Private equity firms are also reportedly in line to buy, though GSK has not confimed any interest.
A Reuters report today claimed the brands could be worth as much as GBP1bn (US$1.5bn).
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