Unilever and GlaxoSmithKline have agreed on a €3.3 billion ($3.8 billion) deal.
The Anglo-Dutch company will acquire GSK’s Indian health food and drinks portfolio, including the Horlicks brand, to strengthen presence in the growing economy.
In a statement, Nitin Paranjpe who is the President of 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.”
“It is rare to be able to acquire brands with such leading market positions and fantastic consumer equity in one of the world’s most exciting and fast-growing markets. Improving the health and wellbeing of 1 billion people by 2020 is a key pillar in our Unilever Sustainable Living Plan. Horlicks and Boost will add to our stable of purpose-driven brands that help consumers to get more out of their lives.”
Anand Shah, an analyst at Axis Capital Ltd. in Mumbai, said: “If you look at Unilever’s foods portfolio in India they have been seriously lagging for many years now, especially versus the global Unilever portfolio. It’s a bid to expand the entire food pie for themselves.”
Shares in GlaxoSmithKline (LON: GSK) are trading -4.30%. Shares in Unilever (LON: ULVR) are +0.59% (1244GMT).
