SSEK Advises GSK on Indonesian Transaction

SSEK has advised GlaxoSmithKline (GSK) on a three-part deal that sees the pharmaceutical company take full control of its Indonesian Consumer Healthcare business, while divesting a non-core brand and a manufacturing facility in the country.

GSK Consumer Healthcare paid 465 billion Rupiah ($40.7 million) to Sarasvati Venture Capital for the 30% of the Indonesian Consumer Healthcare business it did not previously own.

GSK also divested its Insto eye drops brand to Pharma Healthcare and agreed to divest its manufacturing site at Bogor to PT Pharma Healthcare for a combined total of 133 billion Rupiah ($11.7 million). The Bogor manufacturing site will transfer to PT Pharma Healthcare in 2015.

David Redfern, GSK's chief strategy officer, said: "This transaction is a further example of GSK focusing its business in strategically important growth markets such as Indonesia. It will also simplify operations in the Indonesian business." 

According to a press release on the GSK website, GSK's Indonesian Consumer Healthcare business sells brands such as Panadol, Sensodyne and Scotts, and is an important emerging markets business for GSK. It has seen significant growth over the last five years, with net sales reaching close to $84 million in 2013, compared to around $27 million in 2008.

Founding partner Ira A. Eddymurthy led the SSEK team advising on the deal.