This acquisition is in line with Unilever's stated strategy of increasing its presence in the health food categories and in high-growth emerging markets.
Unilever has signed a deal to buy GlaxoSmithKline's (GSK) health food drinks (HFD) portfolio in India, Bangladesh and 20 other predominantly Asian markets. This acquisition is in line with Unilever's stated strategy of increasing its presence in the health food categories and in high-growth emerging markets.
The health food drinks portfolio of GSK had delivered a total turnover of about 550 million Euro, primarily through the Horlicks and Boost brands, in 2018.
Nitin Paranjpe, President (food and refreshment), Unilever, said, "We are delighted to be acquiring the GSK Health Food Drinks portfolio. The iconic Horlicks brand has a deep heritage, credibility and resonance around the world."
"The acquisition is transformative for our foods and refreshment business, allowing us to enter the health food drink category, further strengthening our position in health and wellness. 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," he added.
Sanjiv Mehta, Chairman and Chief Executive Officer, HUL, said, "With this strategic merger of HUL and GSK Consumer Healthcare India Limited, we will be expanding our portfolio through 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 and cost synergies. The turnover of our foods and refreshments business will now exceed Rs 100 billion, 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," Mehta further stated.