PR Newswire

LUDWIGSHAFEN, West Germany - Joh. A. Benckiser GmbH has agreed to acquire the Astor/Lancaster Group of Beecham Cosmetics Europe from SmithKline Beecham plc (NYSE: SBH) for 210 million pounds sterling (US $354.7 million).

Benckiser is an international consumer products company whose major brands in their household products division include Calgon/Calfort and Calgonit; Finish and Vanish in the United Kingdom; St. Marc, Abeille and Baranne in France; Ava, Lanza and Sole in Italy; Quanto, Colon and Flor in Spain; and Calgon, Cling Free, Electrasol and Jet-Dry in the United States.

Astor/Lancaster includes the well-known European cosmetics names of Lancaster (a wide range of prestige cosmetic treatment and fragrance products); Margaret Astor (cosmetic products); Monteil (skin treatment products); Parera (fragrances); and a number of designer brands under license agreements. The business had sales of 264 million pounds sterling (US $445.9 million) in 1989, 50 percent of which were in Germany and another 40 percent in Spain, France and Italy. Astor/Lancaster has production facilities in Michelstadt, West Germany; Monaco; Chartres, France; and Barcelona, Spain. It employs approximately 3,800 people.

"This acquisition is consistent with our strategy of fueling growth by buying and fully exploiting the potential of established consumer brands," said Dr. Peter Harf, 44, chairman and chief executive officer of Benckiser. "The acquisition of Astor/Lancaster represents another major step in Benckiser's restructuring of its business. Since 1985, the company has acquired eight consumer products businesses companies in 10 countries for an aggregate consideration of more than $1 billion while shedding non-core chemical operations for aggregate proceeds of nearly $200 million."

Benckiser is now almost exclusively focused in consumer products. Major acquisitions since 1987 include Mira Lanza and Panigal in Italy, S.A. Camp in Spain, as well as the household products businesses of both Ecolab and SmithKline Beecham in the U.S.

The transaction is subject to approval by the German Cartel Office, and the approval process is anticipated to take one month. With the acquisition of Astor/Lancaster, Benckiser expects 1990 sales to top DM 3.4 billion (US $2 billion). 1989 sales were DM 2.2 billion (US $1.3 billion).