Unilever announced the acquisition of the US-based Alberto Culver Company for US$3.7 billion in cash. Through this transaction, Unilever strengthens its position in North America and becomes a world’s leading company in hair care products.
Alberto Culver markets successful brands such as TRESemmé, Nexxus, VO5, St Ives and Simple. “These will complement Unilever’s existing portfolio of iconic brands like Dove, Clear and Sunsilk in hair care and Pond’s and Vaseline in skin and will help build on our strong global positions in both the hair care and skin care categories,” said Paul Polman, CEO of Unilever.
Alberto Culver generated sales approaching US$1.6 billion for the fiscal year ending June 30, 2010. The company has operations in nine countries, including the US, Canada, Argentina, Mexico, the UK, South Africa and Australasia. It has six manufacturing facilities and employs around 2,700 people.
One year after having purchased Sara Lee’s personal care business, and of hair care specialist TiGi, this new acquisition makes Unilever the world’s leading company in hair conditioning, the second largest in shampoo and the third largest in styling, and significantly enhances its hair care presence in the US, Canada, the UK, Mexico and Australasia.
Personal Care is a strategic category for Unilever, currently representing 30% of the company’s turnover, against 20% ten years ago.
“Viewing the global marketplace today, we believe that for our brands to achieve their full potential, they need to be able to compete in all major global markets. Given the resources this would require, our brands’ chances for success are better served by being merged into a larger organization with an even larger global footprint than Alberto Culver’s,” said Ms. Carol Lavin Bernick, Executive Chairman, on behalf of the Alberto Culver Board of Directors.
The acquisition is subject to regulatory approval, approval of the Alberto Culver shareholders.
