Unilever to buy Alberto Culver in $3.7bn cash deal
Personal care giant to acquire VO5, TRESemmé and Simple brands
It has been reported today that Anglo-Dutch C&T giant Unilever will buy Alberto Culver in a cash deal worth an estimated $3.7bn. This will add many brands to Unilever’s extensive portfolio which currently includes Dove, Sunsilk, Pond’s and Vaseline.
The purchase is set to make Unilever the world leader in hair conditioning as well as the second largest in shampooing.
Unilever ceo, Paul Polman said in a statement: “The new brands will help build our strong global positions in both the hair care and skin care categories,” adding that “personal care is a strategic category for Unilever and growing rapidly”.
Unilever's $3.7bn acquisition of Alberto Culver is being widely seen by European consumers and cosmetics industry analysts as a move to confront L'Oréal's dominance of the shampoos and hair care products segment of the world market.
Unilever entered the professional hair care market a year ago with the purchase of Tigi for around $411m. Tigi operates in the UK, Italy and Germany as well as the US. The Culver purchase offers a major company with a workforce of 2700 and six production plants and steadily improving sales and margins. The US company has been listed on Wall street since 1961.
Paul Polman, Unilever's group director general, has said the deal reflects the company's intention of putting the emphasis on body care products which it sees as a strategic and rapidly growing market as well as a highly profitable one. The acquisition also pushes up Unilever's margin in the body care products sector to some 15.8%, ahead of some of its consumer products areas. Body care products will now account for over 30% of Unilever's total sales.
The acquisition is subject to approval by regulators and Alberto Culver shareholders.