GSK sells soft drinks Lucozade and Ribena for £1.35 billion to focus on pharma and vaccines

UK pharma major GlaxoSmithKline (LSE: GSK) has sold its nutritional drinks brands Lucozade and Ribena to Japanese consumer goods company Suntory Beverage & Food (TYO: 2587) for £1.35 billion ($2.11 billion). It is expected that the transaction will be completed by the end of the year, subject to regulatory approvals.

The company said GSK’s Consumer Healthcare business has been increasing its focus around a core portfolio of health care brands, with a particular emphasis on emerging markets. As part of this, the company initiated a strategic review of Lucozade and Ribena in February and decided to divest the brands, subject to the realization of appropriate shareholder value.

The net proceeds of the transaction after tax, fees and costs are estimated to be around £1.3 billion. The net profit will be excluded from core operating profit and EPS in 2013.  The proceeds will be used to reduce debt and for general corporate purposes.