BEECHAMS PILLS ACQUISITION
As a send-off to its new financial year Philip Hill and Partners is to put through a deal between Beechams Pills, one of the big companies in the group, and the County Perfumery Co., owners of the " Brylcreem " business. Beechams Pills has bought the Brylcreem undertaking for something in the neighbourhood of £580,000, and to finance the purchase Beecham Maclean Holdings, a subsidiary of Beechams Pills, is to issue 600,000 Li 5+ per cent. cumu- lative redeemable preference shares at par: These new (Continued on page 128)
FINANCE AND INVESTMENT
(Continued from page 126) preferences, which will be offered only to shareholders in the group, will rank behind the existing 5 per cent. pre- ferences, but will also enjoy the Beechams Pills guarantee. The cover will be good, since the profits of Beecham Mac- lean Holdings alone were £272,000 last year, and another ‘61,000 is expected from the Brylcreem investment. Taking the two together, the total available is £333,000, which covers the dividends on both classes of preference capital over three times. If you add in the profits of the guarantor, the cover figure is raised to eight times. The new 52 per cent. preferences are redeemable at 21s. 6d. by an annual sinking fund to complete repayment by 1961.
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