GSK puts Horlicks up for sale following review of UK business

Thu, 20 Jul 2017 | DIVISION SALE

Drugs giant Glaxosmithkline will sell its Horlicks business in the UK and close the location where the malted drink is manufactured.

The decision comes as part of a suite of restructuring changes announced by GSK’s chief executive, Emma Walmsley, in a bid to improve efficiency in the drug group’s British manufacturing network.

Walmsley succeeded former boss Sir Andrew Witty in April and made it clear she would refocus GSK’s efforts on its drugs business, putting it “more at the heart of where we spend our leadership time and what we spend our time talking about”.

Alongside selling the Horlicks brand and closing the Slough factory where it has been made since 1908, GSK will also sell off its Maxi Nutrition brand.

The group is also considering selling its antibiotics business, which has facilities based in Ulverston in Cumbria, Verona and Bernard Castle, near Durham. Manufacturing based at GSK’s Worthing site will also be outsourced.

In total, the moves are expected to lead to the loss of 320 jobs over the next four years, with a review of the firm’s antibiotics unit risking more still.

GSK has also abandoned a proposed £350 million biopharmaceutical manufacturing plant in Cumbria, hailed five years ago by then Prime Minister David Cameron for the potential creation of 500 new jobs.

As Britain’s largest drugs company, GSK currently employs around 17,000 people in the UK – with 5,000 of those working in manufacturing – but stressed that the move was unrelated to the potential impact of Brexit.

Philip Thomson, president of global affairs, said: "We are continuing to invest in science and our core businesses in the UK and we continue to see the UK as an attractive place for the life sciences industry.

Horlicks, a favourite bedtime drink of many, has been made on UK soil for more than 100 years but has seen annual sales in the country decline to about £15 million. It is still popular in India and South-East Asia, where consumers account for the bulk of its global revenue.

Find food businesses for sale
Subscribe to the Business Sale Report here


Share this article



Latest Businesses for Sale

Consulting Engineers Focused on the Built Environment
London, UK

Unusual opportunity to acquire this national and well established, full service Mechanical & Electrical consulting engineering company. Offers invited.

Asking Price: £2,700,000
Turnover: £5,800,000

LEASEHOLD


Freight Brokerage Services
UK Wide

Works with a network of reliable hauliers to provide comprehensive and reliable logistics solutions on a national basis. Offers invited.

Asking Price: Offers Invited
Turnover: £420,000

RELOCATABLE


Food Manufacturer Specialising Flatbread Products
North of England, UK Wide

Has established a prominent position with clients in its industry due to its prestigious portfolio. Operates from two leasehold premises. Offers invited.

Asking Price: Offers Invited
Turnover: £671,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
23
 
May
 

Fintech company Loot collapses into administration | ADMINISTRATION

After failing to secure further backing from the Royal Bank ...

 
22
 
May
 

Spike in M&A activity in the education sector | BUSINESS SALE

In recent months, the education sector in the UK has witness...

 
22
 
May
 

Jamie Oliver restaurant empire collapses into administration | ADMINISTRATION

Celebrity chef Jamie Oliver, who shot to fame after campaign...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
07
 
Sep
 

Japanese company in takeover talks with GSK over drinks brands | BUSINESS SALE

Suntory Beverage & Food is in discussion with GlaxoSmithKlin...

 
25
 
Apr
 

GSK puts Lucozade and Ribena on the market | DIVISION SALE

It has been confirmed that Lucozade and Ribena are on the ma...

 
22
 
Apr
 

Lucozade and Ribena prepped for a sell off | DIVISION SALE

Popular soft drinks brands Lucozade and Ribena face being pu...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources