Something went wrong with the connection!

FDBusiness.com

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

 Breaking News

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
Spread the love

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.


Warning: count(): Parameter must be an array or an object that implements Countable in /home/fdbusiness/public_html/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

    Subscribe Here



    Advertisements