GSK buys 100% of its Indonesian Consumer Healthcare
The transaction is with three connected entities. GSK Consumer Healthcare Pte. Ltd has paid IDR 465 billion (24.6 million pounds) to Sarasvati Venture Capital Ltd (SVC) for the 30 percent of the Indonesian Consumer Healthcare business it did not previously own.
GSK has also divested its Insto eye drops brand to Pharma Healthcare Pte. Ltd and agreed to divest its manufacturing site at Bogor, Indonesia, to PT Pharma Healthcare for a combined total of IDR 133 billion (7 million pounds).
David Redfern, GSK chief strategy officer, said: "This transaction is a further example of GSK focusing its business in strategically important growth markets such as Indonesia. It will also simplify operations in the Indonesian business."
The transaction will complete in two stages. GSK has completed the purchase of the shares and the divestment of the Insto brand. The Bogor manufacturing site will transfer to PT Pharma Healthcare in 2015. GSK’s Indonesian Consumer Healthcare business sells brands such as Panadol, Sensodyne and Scotts, and is an important emerging markets business for GSK.
It has seen significant growth over the last five years, with net sales reaching close to 50 million pounds in 2013 in comparison to around 16 million pounds in 2008. With increased geographical coverage and by using targeted product innovation serving a fast-expanding middle class, the future prospects for the business are strong. Insto eye drops are manufactured at the Bogor site and the brand is only sold in Indonesia.
GSK will continue to sell the same formulation under the brand Eyemo across a number of other emerging markets, which are unaffected by this transaction. ■