FDBusiness.com

Unilever to Acquire Horlicks and Other Consumer Healthcare Nutrition Products From GSK

 Breaking News
  • £50 Million Telford Expansion Gives Müller 500 Million Pot Capacity A £50 million expansion project by Müller UK & Ireland to build a chilled yogurt manufacturing facility capable of producing 500 million pots each year in Telford, England, has been completed. The investment, which has created 65 new jobs in the area, enables Müller to meet growing demand from consumers for branded and private label yogurts made with [...]...
  • A Question of Balance for Clean and Clear Label Clean and clear labeling concerns are now well established in the food and beverage industry, having featured as a key and running theme through all Innova Market Insights’ Top Trends forecasts in recent years. More than ten years ago ‘Go Natural’ led the company’s annual top trends listing and since then clean label claims have [...]...
  • Bord Bia Drive to Make Potatoes More “Insta-friendly” With the Millennial Consumer Potatoes are still the most consumed carbohydrate in Ireland with 97% of all households purchasing potatoes and a recorded growth in purchase of 1.3% to September 20181. Irish people are eating potatoes on average more than 3 times a week, however, millennial consumers are buying with less frequency than the overall market. To understand the reasons behind [...]...
  • PepsiCo Targets African Growth in $1.7 Billion Deal PepsiCo has agreed to acquire all the outstanding shares of Pioneer Foods Group of South Africa for approximately US$1.7 billion. Pioneer Foods has a robust, locally relevant product portfolio that complements PepsiCo’s current line-up, with strong positions in cereals, juices, and other African nutritional food staples, including well-known, scaled brands like Weet-Bix, Liqui-Fruit, Ceres, Sasko, [...]...
  • WHO/Europe Studies Find Baby Foods are High in Sugar and Inappropriately Marketed For Babies Two new studies from WHO/Europe show that a high proportion of baby foods are incorrectly marketed as suitable for infants under the age of 6 months, and that many of those foods contain inappropriately high levels of sugar. WHO’s long-standing recommendation states that children should be breastfed, exclusively, for the first 6 months. Its 2016 [...]...

Unilever to Acquire Horlicks and Other Consumer Healthcare Nutrition Products From GSK

Unilever to Acquire Horlicks and Other Consumer Healthcare Nutrition Products From GSK
December 04
09:21 2018

Unilever has agreed to acquire the Health Food Drinks portfolio (GSK HFD) of GlaxoSmithKline (GSK) in India, Bangladesh and 20 other predominantly Asian markets for €3.3 billion in a combination of cash and shares. In 2018, the GSK HFD portfolio delivered total turnover of about €550 million, primarily through the Horlicks and Boost brands. Almost 90% of the turnover is in India.

The transaction is aligned with Unilever’s stated strategy of increasing its presence in health-food categories and in high-growth emerging markets.

The transaction consists of three elements: an all-equity merger of Hindustan Unilever Ltd (HUL) with the publicly listed GSK Consumer Healthcare India (GSK CH India), the acquisition of an 82% stake in GSK Bangladesh, and the acquisition of certain other commercial operations and assets outside India.

Nitin Paranjpe, president, Food & Refreshment at Unilever.

GSK HFD is the undisputed leader in the Health Food Drinks category in India, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims. This portfolio has a long history in India with Horlicks having originally been introduced in the 1930s. Horlicks products have been an everyday staple in South Asian households across generations. Over the last 15 years, the portfolio (and category) has grown at a double-digit rate. Despite this, the category still remains under-penetrated in India. Unilever is well positioned to further develop the market given the extent of its reach and capabilities.

Nitin Paranjpe, president, Food & Refreshment at Unilever, says: “The iconic Horlicks brand has a deep heritage, credibility and resonance around the world. The acquisition is transformative for our Foods and Refreshment business allowing us to enter the Health Foods Drinks category, further strengthening our position in health and wellness. It is rare to be able to acquire brands with such leading market positions and fantastic consumer equity in one of the world’s most exciting and fast-growing markets. Improving the health and wellbeing of 1 billion people by 2020 is a key pillar in our Unilever Sustainable Living Plan. Horlicks and Boost will add to our stable of purpose driven brands that help consumers to get more out of their lives.”

Sanjiv Mehta, chairman and chief executive of Hindustan Unilever, says: “With this strategic merger of Hindustan Unilever and GSK Consumer Healthcare India Limited, we will be expanding our portfolio through great brands into a new category catering to the nutritional needs of our consumers. I am confident that this merger will create significant shareholder value through both revenue and cost synergies. The turnover of our Foods & Refreshments business will now exceed Rs100 billion and we will become one of the largest F&R businesses in the country.”

The transaction is subject to customary regulatory and shareholder approvals, with expected completion in 12 months.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 17, 2019Future Food-Tech
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements