FDBusiness.com

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

 Breaking News
  • Change of Leadership at Edrington Edrington, the international premium spirits company, has announced that chief executive officer Ian Curle will retire in March 2019 after 15 years in that role. His successor will be Scott McCroskie, who is currently a member of the Edrington board and managing director of The Macallan. Ian Curle joined the business in 1986 through Edrington’s subsidiary [...]...
  • Guinness to Sponsor Six Nations Rugby The iconic global brand Guinness is to become the new title sponsor of the Six Nations, with the Championship to be known as the Guinness Six Nations from 2019. The Six Nations is one of the world’s best attended sports events and regularly attracts record TV and online audiences in the UK, France, Ireland, Italy [...]...
  • Mondelēz International Expands its Global Technical Center in Poland Mondelēz International has announced a new investment in its Global Technical Center in Wroclaw, Poland. Only 1.5 years after the center opening, the company invested a further $5 million, in addition to the initial $17 million investment, to expand the research and development activities beyond Chocolate and Bakery and serve Gum and Candy innovation. This state-of-the-art facility will now serve [...]...
  • Givaudan Launches a New Innovation Platform Givaudan, the global leader in flavours and fragrances, has launched MISTA, a new innovation platform for the food industry. More encompassing than an incubator or accelerator, MISTA is an optimiser, enabling start-ups and established corporations to optimise ideas, products, people and investments. Located in San Francisco, MISTA will open its physical premises in early 2019. With [...]...
  • Cargill Celebrates a Decade of Sustainability and Innovation in Ghana With Investment Plans and Farmer Support Cargill’s cocoa & chocolate business has commemorated its 10th anniversary in Ghana by announcing plans for future investment and farmer support. Cargill’s 2022 roadmap for Ghana includes: * 80,000 farmers receiving capacity building support and facilitated access to inputs through our Farmer Field Schools * The provision of one million new cocoa seedlings for rehabilitation of old farms [...]...

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

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements