FMCG giant Unilever has announced it has secured a deal to acquire GSK’s health consumer products division in India, Bangladesh and other predominantly Asian markets, for a total consideration of €3.3 billion ($3.8 billion).
The transaction is said to consist of an all-equity merger of Hindustan Unilever Ltd with GSK Consumer Healthcare India, the acquisition of an 82% stake in GSK Bangladesh Limited, and the acquisition of certain other commercial operations and assets outside India.
Unilever said the transaction is aligned with its stated strategy of increasing its presence in health-food categories and in high-growth emerging markets. In 2018, GSK’s health consumer products division turned over around €550 million ($627 million), mostly in India and primarily through the Horlicks and Boost brands.
Commenting on the deal, Nitin Paranjpe, president, Food & Refreshment at Unilever, said: “We are delighted to be acquiring the GSK Health Food Drinks portfolio. The iconic Horlicks brand has a deep heritage, credibility and resonance around the world. 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”.
“Improving the health and wellbeing of 1 billion people by 2020 is a key pillar in our Unilever Sustainable Living Plan”, he added. “Horlicks and Boost will add to our stable of purpose driven brands that help consumers to get more out of their lives”.