Buyout of Paras by Reckitt Benckiser
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Case Code: BSTR390 Case Length: 27 Pages Period: 2010-2011 Pub Date: 2011 Teaching Note: Not Available |
Price: Rs.500 Organization: Reckitt Benckiser Group Plc, Paras Pharmaceuticals Limited Industry: Fast Moving Consumer Goods Countries: UK, India, Global Themes: Merger and Acquisition, Business Strategy |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Many Suitors For Paras
On September 9, 2010, Reuters reported that Actis and Sequoia, which together held 70.3% in Paras, were looking to exit for US$ 700 million or so....
The Deal
As per the deal, RB acquired Paras in exchange for Rs. 32.6 billion or US$ 726 million or £ 454 million. On the occasion, Becht said, "The acquisition of Paras is another step forward in RB's growth strategy in consumer healthcare...
The Deal Driver
According to industry experts, RB had a very limited presence in the Indian market given its global stature. The company had been eagerly looking for a suitable match...
The Synergies
According to experts, RB already had a significant distribution network for its products like Cherry Blossom, Clearasil, Dettol, Disprin, Durex, Harpic, Mortein, Strepsils, and Veet..
Looking Forward
According to industry experts, the Paras buyout by RB had once again highlighted the growing trend of the acquisition of Indian companies by foreign companies, especially in the pharma sector....
Exhibits
Exhibit I: A Brief Note on Mergers and Acquisitions Activities in 2010
Exhibit II (A): Nineteen Powerbrands of Reckitt Benckiser
Exhibit II (B): Product Category of Reckitt Benckiser
Exhibit III: Product Range of Paras Pharmaceuticals Limited
Exhibit IV (A): Income Statement of Reckitt Benckiser: 2006-09
Exhibit IV (B): Balance sheet Reckitt Benckiser: 2006-09
Exhibit V (A): Income Statement of Paras Pharmaceuticals: 2006-09
Exhibit V (B): Balance Sheet Paras Pharmaceuticals: 2006-09
Exhibit VI (A): Reckitt Benckiser Stock Price Movement: January 15, 1999-December 31, 2010
Exhibit VI (B): Reckitt Benckiser Stock Price and FTSE 100 Movements: January 15, 1999-December 31, 2010
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