India’s largest FMCG company Hindustan Unilever Limited (HUL), recently announced that it has successfully completed the merger of GlaxoSmithKline Consumer Healthcare Limited (GSKCH) with HUL.
This merger was first announced in December 2018 and was subject to obtaining necessary approvals. It is being said that the acquisition is one of the largest deals in the FMCG sector in recent times.
In addition, the Board of Directors of HUL today also approved HUL acquiring the Horlicks Brand for India from GSK for consideration of ₹3045Cr, exercising the option available in the original agreement made between Unilever and GSK.
This will enable HUL to utilize cash on its balance sheet and create value for shareholders. The other brands which were under the ownership of GSKCH like Boost, Maltova and Viva come to HUL’s brand portfolio by virtue of the merger.
The merger is in line with HUL’s strategy to build a sustainable and profitable Foods and Refreshment (F&R) business in India by leveraging the megatrend of health and wellness. GlaxoSmithKline Consumer Healthcare Limited is the undisputed leader in the HFD category, with brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims.
Horlicks, with a volume share of close to 50%, was first introduced to India in the 1930s. The merger will bolster HUL’s focus to build a profitable and sustainable Nutrition business in India.
Sanjiv Mehta, Chairman, and Managing Director, Hindustan Unilever said, “Brands such as Horlicks and Boost are iconic, and we are excited to have them in the Hindustan Unilever fold. The merger gives us a unique opportunity to live our purpose and serve India where Nutrition-related challenges form the largest causes of disease– Malnutrition and Micronutrient deficiency – and aligns well with the Government’s ambitious Swasth Bharat and Poshan Abhiyan programs. I am delighted to welcome the 3500 – strong Nutrition Team to the HUL family. Both organizations have common values coming from a lineage of respected parent companies and a shared heritage of building iconic trusted brands.”
He further added, “In the current context, the focus of the company has been to ensure that all our people remain safe and we do our best to keep supply lines running for essential products. In these difficult times, we are joining hands with the Government in the fight against COVID 19.’’
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