Beiersdorf is strategically focussed upon its core competence, the profitable growth of branded
consumer goods. Other businesses are being separated to focus stronger upon their core businesses.
On March 23, 2000, first information about negotiations with
Smith & Nephew in health care was
given. On June 28, 2000, subsequent information about the acquisition of the Elastoplast brand and
the distribution rights of NIVEA in the UK and several Commonwealth countries was published.
Current confirmation is as follows:
Beiersdorf today announces the successful completion of the negotiations with Smith &
Nephew to create a global joint venture of their traditional
wound care, casting, bandaging
and
compression hosiery (phlebology) businesses. The joint venture with Smith & Nephew
will provide a new platform for a strong world wide professional business.
Beiersdorf sells some products of its advanced
wound management business to Smith &
Nephew. This follows Beiersdorf's strategy to focus on consumer branded products.
Both
transactions are conditional upon receipt of
competition clearance.
New platform for a strong professional business
The joint venture will be 50 % owned by each parent company with combined
sales of about € 490
m. Beiersdorf and Smith & Nephew will transfer € 260 m and € 230 m of sales respectively into the
joint venture on which they generated € 29 m and € 27 m of profit in 1999. Profits will be shared
equally between Beiersdorf and Smith & Nephew.
The joint venture will be independently managed by a team drawn from both parent companies and
led by Chief Executive Graham Siddle until recently Group Commercial Director of Smith & Nephew
with Messrs. J. Bauschke, Dr. M. Ballicu and Dr. C. Wiegel joining the management team from
Beiersdorf. The joint venture will be headquartered in
Germany and have independent sales and
distribution resources in its key markets
Germany, the UK, the US,
France and the
Netherlands and will
initially share selling resources of both parents in other countries. It will have approximately 3000
employees with
manufacturing facilities in Germany, the UK, US, France,
Ireland,
South Africa,
Mexico,
India and
Pakistan. Some 65 % of its sale will be in Europe and 15 % in the US.
The joint venture is expected to generate significant benefits resulting from sales synergies to be
achieved on a global basis.
Further synergies will come from the rationalisation of manufacturing and selling facilities on a global
scale.
Competition clearance for the joint venture is expected within the next months with the joint venture
being fully operational as of April 2001.
Medical business to be rearranged
Related to the creation of the joint venture Beiersdorf will sell some products of its advanced wound
care business with about € 53 m to Smith & Nephew. Competition clearance is expected within the
next months with the transaction being completed by the end of the first quarter of 2001. This
transaction will be conditional to completion of the joint venture.