Consumer goods group Unilever Plc/NV will buy US hair and skin care company Alberto Culver for $3.7 billion in the latest move to rebalance its portfolio towards higher growth lines.
Unilever’s biggest acquisition in a decade will add brands such as V05, TRESemme and Nexxus to Unilever’s existing Dove and Sunsilk, and make it the world’s leading company in hair conditioning and the second largest in shampoo.
Analysts said the price of the deal looked high but could be justified by as-yet unspecified cost savings and by skewing Unilever’s business to more high growth, high margin categories compared to its other food and detergent businesses.
The acquisition follows a yet-to-be completed deal to buy Sara Lee’s bodycare division for $1.3 billion and will also mark Unilever’s biggest acquisition since its massive Bestfoods deal in 2000.
Unilever Plc shares rose 2.23% to 18.33 pounds by 3:56pm, in a little changed London stock market as other analysts said the deal will give Unilever greater hair care sales in the US where it has struggled in recent years.
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