Buyout of Paras by Reckitt Benckiser

Buyout of Paras by Reckitt Benckiser
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
Buyout of Paras by Reckitt Benckiser
Abstract Case Intro 1 Case Intro 2 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....


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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