Unilever wraps up acquisition of Horlicks from GSK, merges HUL and GSKCH
Unilever’s Indian subsidiary Hindustan Unilever Limited (HUL) has wrapped up its previously announced merger of GlaxoSmithKline Consumer Healthcare (GSKCH).
Hindustan Unilever announced the merger with GlaxoSmithKline Consumer Healthcare in December 2018, in line with its strategy to evolve the foods and refreshment portfolio into higher-growth segments. The company has secured all the required approvals to wrap up the deal.
Unilever at that time struck a €3.3 billion deal to acquire the health food drinks portfolio of GlaxoSmithKline (GSK) in India, Bangladesh, and 20 other predominantly Asian markets. The deal includes Unilever’s acquisition of a stake of 82% in GSK Bangladesh and the acquisition of some other commercial operations and assets outside India.
With the transaction closed, Unilever has brought down its stake in HUL from 67.2% to 61.9%.
Unilever has also wrapped up the associated acquisition of the brands rights of Horlicks for €375.6 million and other consumer healthcare nutrition assets from GSK in other predominantly Asian markets. The company expects the closing of the deal in Bangladesh later this quarter, subject to local procedures.
Sanjiv Mehta – Chairman and Managing Director of Hindustan Unilever said: “Brands such as Horlicks and Boost are iconic, and we are excited to have them in the Hindustan Unilever fold. The merger gives us a unique opportunity to live our purpose and serve India where Nutrition related challenges form the largest causes of disease– Malnutrition and Micronutrient deficiency – and aligns well with the Government’s ambitious Swasth Bharat and Poshan Abhiyan programs.
“I am delighted to welcome the 3500 – strong Nutrition Team to the HUL family. Both organizations have common values coming from a lineage of respected parent companies and a shared heritage of building iconic trusted brands.
“In the current context, the focus of the company has been to ensure that all our people remain safe and we do our best to keep supply lines running for essential products. In these difficult times, we are joining hands with the Government in the fight against COVID 19’’