Anglo-Dutch consumer goods group Unilever has agreed to buy US-based hair care group Alberto Culver Co. for $3.7 billion in cash to boost its personal care business.
The acquisition will bring brands including V05, TRESemmé and Nexxus, making Unilever the world leader in hair conditioning, the second largest in shampoo, and the third largest in styling.
"Personal care is a strategic category for Unilever and growing rapidly,” said Unilever chief executive Paul Polman in a statement. “Ten years ago it represented 20 percent of our turnover; strong organic growth has driven it to now reach over 30 percent, with strong positions in many of the emerging markets."
Alberto Culver reported annual sales of nearly $1.6 billion in the 12-month period ending June 30, 2010, and earnings before interest, tax, depreciation and amortization (EBITDA) of over $250 million. Its brands will complement Unilever's existing portfolio of products like Dove, Clear and Sunsilk in hair care, and Pond's and Vaseline in skincare.
The acquisition is subject to the usual regulatory approval and also approval by Alberto Culver shareholders.If it goes through, it will boost Unilever's hair care presence in the US, Canada, Britain, Mexico and Australasia, all of which are expected by Unilever to be significant hair care markets for the foreseeable future.
Alberto Culver has operations in nine countries, including the US, Canada, Argentina, Mexico, Britain, South Africa and Australasia, with six manufacturing plants employing around 2,700 people.
