Published: Wed, December 05, 2018
Medical | By Johnnie Horton

HUL buys Horlics for over 31000 crore

HUL buys Horlics for over 31000 crore

GSK said India remained an important market for it and the company will continue to invest in growth opportunities for its OTC and Oral Health brands there, which include Crocin, Eno and Sensodyne.

The second-biggest deal by value in the consumer goods space is that of Diageo picking up majority stake in United Spirits.

The acquisition of GSK's nutritional drinks, particularly Horlicks, is in line with HUL's strategy to build a sustainable and profitable foods and refreshment business in India by leveraging the mega trend of health and wellness, said the Indian arm of British-Dutch giant Unilever a statement. "The acquisition is transformative for our Foods and Refreshment (F&R) business, allowing us to enter the Health Foods Drinks category..." said Nitin Paranjpe, president (food & refreshment), Unilever. GSK will own about 5.7% of Hindustan Unilever.

Apart from selling the consumer healthcare business in India, GSK is also selling 82 per cent stake in its unit in Bangladesh and brand rights for GSK's consumer healthcare nutrition activities in few other markets to Unilever separately, for 566 million GBP in cash.

It also includes acquisition of certain other commercial operations and assets outside India, it added. HUL expects that the transaction will take its food and refreshment business to Rs 10,000 crore turnover.

Kate Middleton looks festive in plaid skirt for Christmas party
Van Straubenzee, a close friend of both Harry and his brother Prince William , died in a vehicle accident in 2002. A report claimed Kate Middleton got upset with Meghan Markle ahead of Meghan's marriage to Prince Harry .

Originally introduced in the 1930s, Horlicks products have a long history in India. "We look forward to welcoming new brands and great talent into the Unilever and HUL family, once the transaction is complete", says Sanjiv Mehta, chairman and managing director, HUL.

The average growth rate has been double digit over the last decade. GSK said it will sell its holding in HUL and this will be done in tranches, taking into account market conditions.

Unilever said its 3.3 billion euros ($3.75 billion) consideration would be paid in cash and shares in its subsidiary in India, Hindustan Unilever Limited. This will come about from a combination of supply chain efficiencies, operational improvements, go-to-market and distribution network optimization and streamlining of overlapping infrastructure.

Post synergies, the implied EV/EBITDA multiple for the transaction would be below 20x.

The transaction is conditional on the approval of the merger by the shareholders and creditors of both GSK India and HUL.

Like this: