This excerpt taken from the GSK 6-K filed Apr 20, 2009.
The formation of the new business will
provide significant opportunities for both sales and cost synergies. Stiefel’s
products will benefit from GSK’s global distribution and commercial organisations,
particularly in markets such as
Brazil, Russia, India, China and
Japan. GSK’s products will
benefit from Stiefel’s specialty sales force, relationships and experienced
management in dermatology.
Cost synergies for the new business are expected primarily from combining manufacturing and administrative functions. The companies expect to deliver annual pre-tax cost savings of up to $240 million by 2012 with integration costs of approximately $325 million over the next 3 years. These integration costs will be reported within the middle column of GSK’s income statement together with other ongoing major restructuring costs. Excluding integration costs, the transaction is expected to result in minor earnings per share (EPS) dilution for GSK in 2009 (less than 1%) and to be 1-2% accretive to EPS in 2010.
The transaction has been approved by the Stiefel stockholders. Closing of the transaction is conditional upon certain matters including receiving certain regulatory clearances and no material adverse change occurring in respect of Stiefel's business prior to closing. The transaction is expected to close in the third quarter of 2009.