Published: Wed, December 05, 2018
Medical | By Vicki Mclaughlin

Unilever to acquire Horlicks and GSK's Health Food Drinks portfolio

Unilever to acquire Horlicks and GSK's Health Food Drinks portfolio

GSK's listed Indian consumer healthcare business will be merged with Hindustan Unilever Limited (HUL), forming one of the largest food and refreshment groups in the country.

GSK Consumer's brands Horlicks, Boost, Viva and Maltova brands will now be a part of HUL's portfolio.

Nestle and CocaCola were also in the race to acquire GSK's health food portfolio. Nearly 90% of this is in India.

HUL chairman and CEO Sanjiv Mehta said with the strategic merger the company will be expanding its portfolio through "great brands into a new category catering to the nutritional needs of our consumers". Horlicks products have been an everyday staple in south Asian households for generations.

GSK India's brands include Horlicks and Boost.

"HUL has reached a definite agreement with GSKCH India in this regard", the company said in a statement.

Post the acquisition, HUL expects the company's Foods and Refreshment (F&R) business to exceed the turnover of Rs 10,000 crore. "Horlicks and Boost will add to our stable of purpose-driven brands that help consumers to get more out of their lives", Paranjpe said.

Former Seahawks CB Brandon Browner Sentenced to 8 Years in Prison
Brandon Browner , who played with the Seahawks , Patriots and Saints, reportedly was sentenced to eight years in prison. For such an egregious act, it seems the former Pro Bowler is getting off fairly easy.

Ted Baker staff launch petition against 'forced hugging' culture
I've seen the CEO ask young female members of staff to sit on his knee, cuddle him, or let him massage their ears. Ted Baker is expected to post disappointing sales this week as it gears up for the critical festive period.

Mississippi State selected to face Iowa in the Outback Bowl
The disappointment comes from the fact that WSU had its best regular season in 15 years as it now holds a 10-2 record. Tickets for the Outback Bowl are priced between $80-170, while Alamo Bowl tickets are priced between $85-135.

India's largest consumer goods maker hinted that it will keep exploring more deals as it plans to increase the share of food category in its business.

Mehta further said that this merger would create remarkable shareholder value through both cost synergies and revenue growth. "We look forward to welcoming new brands and great talent into the Unilever and HUL family, once the transaction is complete". The transaction includes acquisition of 82 per cent in GSK Bangladesh and other commercial operations and assets outside India.

The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSK CH India.

HUL, in a stock-market disclosure on Monday, announced that its board has approved a scheme of merger with GSK Consumer Healthcare India.

Although Horlicks brand in England is 140 years old and in the deal with HUL, the company's business in England will not be affected. "In the past few quarters, Unilever/HUL in India is increasingly getting aggressive on inorganic expansion - Indulekha hair oil, Adityaa ice cream", Abneesh Roy, research analyst, senior vice president, institutional equities, research, Edelweiss Securities, said in a note.

Meanwhile, the deal has led Deutsche Bank to upgrade HUL from "hold" to buy as it believes that the acquisition would lead to a cumulative gain of around 700 basis points to 800 basis points in the earnings per share in the coming years.

Like this: