Unilever acquires GlaxoSmithKline’s Asian Health Food Drinks portfolio in deal worth US$3.8bn
British-Dutch multinational consumer goods firm Unilever has announced its acquisition of GlaxoSmithKline’s (GSK) Health Food Drinks (HFD) portfolio in India, Bangladesh, and a further 20 Asian markets
The deal is valued at US$3.8bn, and will see Unilever acquire 82% of GSK Bangladesh, an all-equity merger of Hindustan Unilever with GSK Consumer Healthcare India, and Unilever’s acquisition of various other commercial assets outside of India.
Unilever’s press release said GSK HFD is the “undisputed leader” in India’s Health Food Drinks market. It added that the majority of the acquired portfolio’s turnover is accrued through the Horlicks and Boost brands, raising 90% of this revenue in India.
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“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,” said Nitin Paranjpe, President of Food and Refreshment at Unilever, in the company’s statement.
“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.”
The acquisition will enable Unilever to significantly expand its footprint in Asia, with Reuters noting that the buyout could also provide the already potent Horlicks brand with a positive jolt in the face of a market that is shifting towards alternatives with less sugar.
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