GlaxoSmithKline (GSK) has announced that former Tesco Chief Executive Sir Dave Lewis will become the Non-executive Chairman Designate of its new Consumer Healthcare company due to be created next year. His appointment will take effect from 1 January 2022.
The Consumer Healthcare unit (a JV between GSK and Pfizer) is due to be separated from the company’s pharmaceuticals and vaccines operation by way of a demerger in mid-2022 of at least 80% of GSK’s holding to shareholders. The new company is then expected to attain a listing on the London Stock Exchange and be led by current CEO Brian McNamara. The standalone firm will have a global product portfolio which generated annual sales of more than £10bn in 2020. Its brands include Sensodyne, Voltaren, Panadol, and Centrum.
Sir Dave led Tesco between 2014 to 2020, pulling the UK’s biggest grocer back from the brink having joined in the midst of a financial reporting scandal and with its operating performance in sharp decline. He left having declared Tesco’s turnaround complete and was knighted earlier this year for services to retail.
Prior to joining Tesco, Sir Dave spent 27 years at Unilever, rising to the position of Global President for its Personal Care division. He earned nickname ‘Drastic Dave’ after fixing businesses through cost-cutting and innovative marketing.
Since leaving Tesco, he has joined the board of PepsiCo and became Chairman of WWF-UK, an animal conservation charity. He has also been advising the government on tackling the current supply chain crisis that is affecting businesses around the UK.
Commenting on the appointment, Sir Jonathan Symonds, Chairman of GSK, said: “He brings outstanding global consumer and retail sector experience that will be of valuable support to Brian and the management team as they deliver the full potential of this new world-leading Consumer Healthcare company.”
Sir Dave added: “GSK Consumer Healthcare is a world-class business with significant prospects and a high-quality leadership team. I am looking forward to being part of its exciting future as an independent company and the very positive impact it can have on people’s health all over the world.”
The company stated that Sir Dave will be tasked with supporting preparations for the demerger and establishing a Board of Directors for the new Consumer Healthcare company.
The recruitment of Sir Dave will be viewed in the City as a major coup for GSK, whose management has been under pressure in recent months from activist investor Elliott Advisors.
A report in October suggested that the Consumer Healthcare business was attracting interest from major private equity firms. Bloomberg said big pharmaceutical and consumer goods companies could also be interested, with the unit valued at £40bn or more.
However, observers regard such a move as unlikely and GSK stated at the time that it was “firmly on track” to spin off the business.
