September 27, 2010 by Post Team
Alberto Culver, Unilever, the maker of Dove soap, agreed to buy Alberto Culver Co. and 3.7 billion in cash to add VO5, Nexxus TRESemme products and hair care in the largest purchase of the company in a decade.
Unilever and pay 37.50 per share in Melrose Park, companies based in Illinois, Alberto Culver said in a statement. That’s about 19 percent above the closing price on 24 September. The purchase will add to earnings per share in its first year, Unilever said in a separate statement.
CEO Paul Polman is expanding at home and personal care products as part of a plan to double total sales. Unilever spent much of the decade shedding brands following the acquisition of 2000, Bestfoods. Polman, who joined in 2009 after a career at Nestle SA and Procter & Gamble Co. $, agreed to buy the operations of Sara Lee Corp. ‘s body-care last year.
“It’s a sensible agreement has strategic reasons well and good, but not transformation – a bolt-in deal like Sara Lee one,” said Martin Deboo,anlyst at Investec Securities in London.
Unilever rose to 2.1 percent to € 22.31 per share in Amsterdam and was trading at € 22.21 as of 13:12 The population has declined by 2.4 percent this year.
“The mass brands”
Alberto Culver and had sales of 1.6 billion and earnings before interest, taxes, depreciation and amortization and 250 million for the 12 months ended June 30, according to Unilever. Unilever offered to pay 1.7 times the annual income of the company Sara Lee.
“It’s a perfect synergy because Alberto Culver is an action with some brands MidCap massive,” said Victoria Collin, a London-basedanlyst at Atlantic Equities, today. “TRESemme is the jewel in the crown and sales are relatively high.”
The purchase makes Unilever’s largest manufacturer of products for the maintenance of hair in the world and the second largest shampoo, said today. It will be the third largest in style.
Unilever entered the professional hair product market in 2009 with the purchase of the hall marks of the creators of TIGI Toni & Guy 411,500,000 y. The acquisition includes simple Alberto Culver, a company of skin care bought in 2009 by about 240 million pounds (+ 379 million).
“Personal care is a strategic category for Unilever and rapid growth,” Polman said in a statement today. “Ten years ago represented 20 percent of our turnover, strong organic growth has led to now reach over 30 percent.”
In August, the executive said he saw about 80 percent of so-called organic growth from emerging markets, driven by the sector of health and personal care, which is “easier to do that with some of the brands of our food. ”
Unilever is the goal of expanding outside Western Europe, the only region where sales fell in the first half, amid slow consumer spending and growing competition from rivals such as Nestle and Procter & Gamble $. Alberto Culver made about 64 percent of its sales in the United States in the year ended September 2009, according to Bloomberg data.
The hair care sector mass market in the U.S. has been showing “low single-digit” decline in growth, according to Collin. Third quarter sales Alberto Culver‘s up 11 percent excluding the impact of currency fluctuations and acquisition, said in July.
The maker of Knorr soups on September 24 agreed to sell its consumer products business in Brazil tomato Cargill Inc. for about 260 million euros (and 350 million euros). The company sold its Italian unit, frozen foods in July by about 805 million euros.
Unilever was advised by Morgan Stanley and UBS AG, according to spokesman Paul Matthews. BDT & acted as financial advisor Alberto Culver Company, while Credit Suisse Securities LLC provided a fairness opinion, the company said in a statement. The acquisition was funded from existing cash resources.
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