Reckitt Benckiser, the Anglo-Dutch household products group behind Lemsip and Gavescon, has won the near £2 billion race to buy Boots Healthcare International, the highly profitable non-prescription drugs business put up for sale by the British high street retailer before it struck a merger deal with Alliance UniChem.

Reckitt, which also manufactures Disprin anti-headache products, immediately claimed that Boots' "very attractive" business - which makes Nurofen, Strepsils and Clearasil - would enhance its earnings straightaway.

The Anglo-Dutch group, which fought off heavyweight rivals GlaxoSmithKline and Bayer to win control of BHI, is targeting cost savings of £75 million within the next three years. It also expects to save £130 million of working capital during the same period.

As his group confirmed it would pay £1.926 billion for BHI - nearly twice the originally expected value of the business - Bart Becht, Reckitt's chief executive, claimed that the combined health and personal care revenues of the two businesses would exceed £1 billion, an increase of 90 per cent.

"BHI will add three power brands to Reckitt Benckiser's portfolio; Nurofen in analgesics; Strepsils in sore throat; and Clearasil in anti-acne. All three brands are already global leaders and have substantial further growth potential," Mr Becht said.

"To realise that potential, Reckitt Benckiser will continue to invest behind BHI's proven R&D and brand development capabilities and use its own distribution capabilities to drive growth in new channels and new countries."

Boots will use £1.43 billion of the sale proceeds to make a one-off special dividend payment. The retailer will use the remaining £400 million for investment.

Reckitt will take a one-off restructuring charge of £150 million to cover the reorganisation and integration costs of buying BHI, in a deal that still needs to be approved by competition regulators in Europe and the United States. However Reckitt said it did not expect any problems gaining merger clearance.

Reckitt buys a consumer healthcare business that has been putting on growth and profits while other parts of the Boots business have been struggling.

During the year to March, BHI increased its revenues by 4 per cent to £523 million and made operating profits of £88 million.

The division operates three factories in Nottingham, all of which Reckitt pledged to continue to use. BHI has two further factories in Germany and Thailand.

But, amid the expectation that Reckitt will introduce a wave of job cuts, news of the deal prompted a swift reaction from unions seeking to defend their members' interests.

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