SmithKline Beecham to purchase Block Drug

December 1, 2000

Pharmaceutical Representative

SmithKline Beecham and Block Drug Co. Inc. announced that the companies have signed agreements for SmithKline Beecham to acquire Block Drug.

Philadelphia-based SmithKline Beecham and Jersey City, NJ-based Block Drug Co. Inc. announced that the companies have signed agreements for SmithKline Beecham to acquire Block Drug, the manufacturer of Sensodyne® toothpaste and various other oral healthcare and consumer products.

The transaction, which has been valued at $1.23 billion, is being effected as a cash tender offer for all of the outstanding common stock of Block Drug, with an offer price of $53 per share. In connection with the agreement, SmithKline Beecham has received commitments from holders of 100% of the Class B (voting) common shares, as well as 52% of the Class A (non-voting) common shares to tender into the offer. The acquisition will be funded by SmithKline Beecham through existing loan facilities.

Completion of the transaction is subject to regulatory clearance from the U.S. and Europe, among others. The agreement is not anticipated to have any impact on the timing of the merger of SmithKline Beecham and Research Triangle Park, NC-based Glaxo Wellcome Inc.

"This acquisition will significantly enhance [SmithKline Beecham's] consumer healthcare business, which is a key part of our strategy for corporate growth," said J.P. Garnier, chief executive officer of SmithKline Beecham. "Block Drug offers an excellent fit with our global oral healthcare and [over the counter] business. It will add to our scale in many important markets around the world and is expected to enhance earnings per share (excluding exceptional items and currency) in the first full year following the completion of the transaction." PR

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