Investors in GlaxoSmithKline (GSK) have waved through the planned demerger of its consumer health business.
Following unanimous backing at a general meeting yesterday, the new company called Haleon will list on the stock market as planned on 18 July, with a valuation of as much as £45bn.
The demerger is a key plank of GSK’s turnaround strategy to focus on its core vaccines and pharmaceuticals businesses.
Haleon, which owns brands such as Sensodyne, Panadol, Advil, and Centrum, made a pre-tax profit of £1.64bn in 2021 on revenues of £9.5bn. The new company will focus “100% on consumer health” with expected annual organic sales growth of 4-6% in the medium term
The spin-off follows GSK’s rejection earlier this year of a £50bn offer for the consumer health unit from Unilever, arguing that it undervalued the business.
Sir Dave Lewis, the former chief executive of Tesco, has been designated as the non-executive chair of Haleon. Brian McNamara, will remain as Chief Executive, having led it as a division of GSK since 2016.
After the demerger is complete, GSK shareholders will own 54.5% of Haleon, while GSK will still own about 6% and control a further 7.5%.
Pfizer will initially own nearly a third of the company, which was formed in 2019 as a joint venture. The US company has said it will gradually sell down its stake after the listing.
NAM Implications:
- A no-brainer…
- Haleon, with a pre-tax profit of £1.64bn in 2021 on revenues of £9.5bn…
- …has to be able to do even better on a solo focus on consumer health.
- Time for rivals in these categories to reassess relative competitive appeal…
- …and modify consumer and trade offerings accordingly.
- Or else…
