Hindustan Unilever has acquired GlaxoSmithKline Consumer Health India for Rs 31,700 crore. The deal is being touted as one of the country’s largest in the consumer goods market.
With this deal, HUL will now own iconic brands such as Horlicks and Boost. The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSK CH India.
Announcing the deal, HUL in a statement said, “The acquisition is in line with the Hindustan Unilever strategy to build a sustainable and profitable Foods and Refreshment (F&R) business in India by leveraging the mega trend of health and wellness. GSK CH India is the market leader in the HFD category, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims,” said the statement by HUL.
Sanjiv Mehta, Chairman and Managing Director, HUL, said, “With this proposed strategic merger with GSK CH India, we will be expanding our portfolio with 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 growth and cost synergies. The turnover of our F&R business will exceed Rs.100 bn and we will become one of the largest F&R businesses in the country. We look forward to welcoming new brands and great talent into the Unilever and HUL family, once the transaction is complete.