GSK Sells North American Brands to Prestige (NYSE: PBH)

Orlando, FL 12/20/11 (StreetBeat) – GlaxoSmithKline (NYSE: GSK) said it agreed to sell a clutch of North American non-prescription drugs for 426 million pounds ($661.6 million) to Prestige Brands Holdings (NYSE: PBH), and remains in talks regarding the sale of similar European assets.

The world's no.2 drugmaker said on Tuesday the sale of the business to the U.S. personal care firm would generate cash proceeds of 242 million pounds, which it will return to shareholders in 2012.

GSK had been expected to sell the North American and European consumer health brands all together for between 1.5 billion and 2 billion pounds, according to initial analyst estimates.

"Active discussions continue with other potential buyers for the remaining assets," Chief Financial Officer Simon Dingemans said.

The company said the assets it disposed of generated sales of around 134 million pounds in 2010, while those it is still marketing to buyers had a turnover of 400 million in the same period.

Shares in GSK traded down 1.5 percent to 1,427.5 pence at 1339 GMT, lagging Britain's bluechip index which was 0.14 percent lower.

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