Reckitt Benckiser (RB) has agreed an eight year licencing deal with UK-based, German-owned consumer health group Thornton & Ross for the K-Y brand in the UK.
The deal will allow RB to secure regulatory approval for its acquisition of the lubricant business from Johnson & Johnson.
Reckitt agreed to buy the J-Y brand globally from Johnson & Johnson in March 2014, but the Competition and Markets Authority said the deal would result in a “substantial lessening of competition and higher prices” for personal lubricants in the UK.
The CMA demanded that Reckitt licence the brand to a third party in the UK for eight years – a deal which has now been signed with Huddersfield-based Thornton & Ross.
Dieno George the chief executive of Thornton & Ross, said that K-Y Jelly would add to the company’s growing range of well-known UK brands, and would bring exciting new opportunities.
George added that K-Y Jelly would also benefit from Thornton & Ross’ strength and experience in manufacturing pharmaceutical quality cream and gel products, and medical devices.
The company is a subsidiary of STADA Arzneimittel AG which is based in Bad Vilbel, Germany.
RB shares were up 2% today as the shares benefited from the wider boost to the FTSE, driven by receding fears that the UK is heading for Brexit.