GlaxoSmithKline Consumer Healthcare merges with HUL
The HUL Board of Directors has approved acquiring the Horlicks brand for India from GSK
Hindustan Unilever Limited (HUL) has announced that it has successfully completed the merger of GlaxoSmithKline Consumer Healthcare Limited (GSKCH) with HUL.
This merger was announced on December 3, 2018, and was subject to obtaining necessary approvals, which have now been secured. This is one of the largest deals in the FMCG sector in recent times and will lead to significant value creation for all stakeholders.
In addition, the Board of Directors of HUL today approved HUL acquiring the Horlicks brand for India from GSK for a consideration of Euro 375.6 mln (Rs 3,045 crore), exercising the option available in the original agreement made between Unilever and GSK. This will enable HUL to utilise cash on its balance sheet and create value for shareholders. In addition, it will enable HUL to drive better salience in a local context. The other brands which were under the ownership of GSKCH like Boost, Maltova and Viva will be part of 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. This 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 programmes. I am delighted to welcome the 3,500-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.”
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