19/05/2006
Friday
SSL takes full control of its China joint venture
SSL International plc (“SSL”) is pleased to announce that it is to take full control of its China
joint venture, Qingdao London Durex Co Ltd (“QLD”). SSL has exchanged conditional contracts with
Qingdao Double Butterfly Group Company Limited to acquire the 50% of the shares it does not
already own in the joint venture, which manufactures Durex condoms for the Chinese market.
Completion is expected to take place by the end of 2006 and is conditional upon, inter alia,
Chinese Government approval.
The purchase price of the remaining 50 per cent of the operation not already owned by SSL is
US$37.5 million (£19.8 million at current exchange rates) and will be satisfied by funds raised
through debt.
Sales and operating profit of QLD in the year to 31st March 2006 were approximately £10 million
and £5 million respectively. The operation has the capacity to produce 140 millions condoms a year.
Commenting, Chief Executive Garry Watts said:
“We are delighted to increase our investment in China. With a population of over 1.3 billion
people and a growing consumer culture, China is an excellent expansion opportunity. As we have
found elsewhere in markets enjoying strong economic development, like China, consumers respond
to well branded quality products, such as Durex.”
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For further information, please contact:
SSL International plc 020 7367 5773
Garry Watts, Chief Executive
Jan Young, Head of Investor Relations
The Maitland Consultancy 020 7379 5151
William Clutterbuck
Brian Hudspith