Unilever to acquire GSK Indian unit for 4.6 billion euros | Progresiv
Unilever has been declared the winner of the bidding war for GlaxoSmithKline’s healthcare unit in India and several other Asian markets, edging out companies such as Nestlé and Coca-Cola. The entire deal is valued at 4.6 billion euros, with Unilever’s share amounting to 3.3 billion euros. 
The GSK unit owns brands such as Horlicks, which is the market leader in the Indian malt-based drinks segment (with a share of 43%), as well as Boost. The unit generated sales of around 550 million euros for the year ending March 2018, with 90% of those sales coming from the Indian market.
In India, the deal will see 4.39 shares of the Hindustan Unilever (HUL) subsidiary being exchanged for one GSK Consumer Healthcare India share, with the former acquiring all of GSK’s healthcare brands in India. HUL will also receive the contract to distribute GSK consumers OTC and oral health products in India. On completion of the deal, Unilever‘s holding in HUL will drop to 61.9% (from 67.2% currently).
The deal is expected to “create significant shareholder value through both revenue growth and cost synergies”, and will push HUL’s revenue from food & refreshment over the Rs100bn (1.25 billion euros) mark. The acquisition is part of Unilever’s increasing push into the food and drinks market, which includes brands such as Knorr, Lipton, Magnum, Bru, and Kissan.
The deal also includes the acquisition of 82% stake in GSK Bangladesh Limited at an equity value of 169 million euros, as well as commercial operations and IP rights in 20 other predominantly Asian markets for around 470 million euros in cash.
Nitin Paranjpe, President, Food & Refreshment at Unilever, said: “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. 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.”
GSK stressed that India remains an important market for it, saying it will continue to invest in growth opportunities for its OTC and Oral Health brands there, which include Crocin, Eno and Sensodyne.
Emma Walmsley, Chief Executive Officer of GSK, commented: “Horlicks has made a significant contribution to GSK and to the health of consumers across India for many decades and we believe Unilever is well placed to maximise its future potential. Proceeds from this transaction will be used to support the Group’s strategic priorities, including investing in our pharmaceutical business.” (www.kamcity.com)
