SSL buys 18 percent stake in condom distributor for eastern Europe

ERJ staff report (SS)

London -- Condom manufacturer SSL International plc will buy an 18 percent stake in Beleggingsmaatschappij Lemore BV, a distributor of condoms and medical disposables, for an estimated £23 million (Euro 30.6 million).

The company said, in a 15 Feb statement, that it has also been granted the option to acquire the remaining shares in BLBV within the next two years, at the rate of nine times EBITDA (earnings before interest, tax, depreciation and amortisation), as well as 100 percent shares in a second company -- Gainbridge Investments Ltd, which is also a distributor in eastern Europe and CIS (Commonwealth of Independent States), including Russia, Ukraine and Armenia.

As part of the deal, BLBV will distribute condoms, such as SSL's Contex brand, and medical disposables in eastern Europe and the CIS. The transaction, which is expected to close in April 2008, is subject to customary closing conditions, said SSL.

“This initial investment is an important step for SSL,” said Garry Watts, chief executive of SSL, in the statement.

“We believe that the fast growing markets in eastern Europe and the CIS have the potential to become a significant part of our business in the future,” he added.

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Press release from SSL