If you live in Bangladesh, then you must have Horlicks from GSK at least for once in your lifetime. You know they say- “From Horlicks to fancy drinks, we have all grown up!”
Hence, GSK has been associated with us for a long time through their health drinks like Horlicks and Boost.
But here is the big news!
Unilever is about to acquire the Health Food Drinks (HFD) portfolio of GlaxoSmithKline in India, Bangladesh and 20 other countries in Asian subcontinent for a staggering $3.8 Billion approx.
According to the statement by Unilever , the transaction considers three elements:
- All-Equity Merger of Hindustan Unilever Ltd (HUL) with the publicly listed GSK Consumer Healthcare India (GSK CH India).
- 82% stake of GSK Bangladesh (listed) will get acquired.
- Acquisition of other commercial assets and operation outside India.
It is reported that Unilever will acquire 82% of GSK Bangladesh Limited for a cash amount of BDT1604 crore. This means GSK is about to leave Bangladesh virtually very soon as they have already closed down its pharmaceutical unit earlier.
Other Transaction and Financial Considerations of the deal.
“With this strategic merger of Hindustan Unilever and GSK Consumer Healthcare India Limited, we will be expanding our portfolio through great brands into a new category catering to the nutritional needs of our consumers. I am confident that this merger will create significant shareholder value through both revenue and cost synergies. The turnover of our Foods & Refreshments business will now exceed Rs. 100bn and we will become one of the largest F&R businesses in the country. We look forward to welcoming new brands and great talent into the Unilever and HUL family, once the transaction is complete.” said Mr. Sanjiv Mehta, Chairman and CEO of Hindustan Unilever.
According to Emma Walmsley, CEO of GSK : ” ‘Horlicks has made a significant contribution to GSK and to the health of consumers across India for many decades and we believe Unilever is well placed to maximize its future potential. Proceeds from this transaction will be used to support the Group’s strategic priorities, including investing in our pharmaceutical business.’
The deal pursues an aggressive sale in which Unilever saw off opponent Nestle, and in addition prior interest from Coca-Cola. Hopefully, Unilever will provide a fresh start for Horlicks and other HFD products of GSK.
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