The deal is valued at GBP164 million (R2.1bn).
Aspen's share price on the JSE soared 6.89% or eight rand on the news to an intraday high of R124.01. It closed at a premium of 5.93% or R6.88 per share of R122.89.
The products Aspen will be acquiring comprise well established OTC brands of proven performance. The main areas of therapeutic treatment of the products are analgesic, gastro-intestinal and respiratory. Other areas covered include dermatology, infant care, vitamins and minerals. The leading products are recognised household brands such as Phillips Milk of Magnesia, Dequadin, Solpadeine, Cartia, Zantac and Borstol.
GSK reports that the products which are the subject of the transactions recorded revenue of GBP 59.3 million in calendar 2011.
"The products acquired through these transactions are an excellent geographic fit with Aspen's existing footprint and will allow for significant strengthening of Aspen's OTC offering in all of the territories concerned. The products have considerable established brand equity which Aspen intends to leverage through increased promotion and plans to expand through line extensions. The transactions will also provide impetus in territories where Aspen is seeking to grow critical mass such as Latin America and South East Asia.
"Aspen expects the transactions to be earnings accretive from the outset," Aspen said.
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