Unilever to Acquire Alberto Culver

Alberto Culver Company, a $1.6 billion in revenue leading manufacturer and marketer of beauty care brands including TRESemme, Alberto VO5, Nexxus, St. Ives, Simple and Noxzema, has entered into a definitive agreement in which Unilever will acquire all of the outstanding shares of Alberto Culver for approximately $3.7 billion.

 

The transaction is structured as a merger and is subject to approval by owners holding a majority of Alberto Culver's outstanding shares, regulatory approvals and other customary closing conditions. The merger agreement was unanimously approved by the Boards of Directors of both companies.

 

A per share price of $37.50 represents a 33 percent premium to Alberto Culver's 12-month volume weighted average share price and an 18 percent premium to its all-time high closing share price achieved earlier this year.

 

Carol Lavin Bernick, executive chairman, Alberto-Culver, says, "Throughout our history, and particularly in the last decade, we have grown Alberto Culver's key brands' sales and market shares at a pace exceeding our highly competitive categories' growth rates. However, viewing the global marketplace today, we believe that for these brands to achieve their full potential, they need to be able to compete in all major global markets. Given the resources this would require, our brands' chances for success are better served by being merged into a larger organization with an even larger global footprint than Alberto Culver's. We believe Unilever is such a company and we believe we are maximizing value for our shareholders through this agreement."

 

Alberto Culver has operations in nine countries, including the United States, Canada, Argentina, Mexico, the UK, South Africa and Australasia. It has six manufacturing facilities and employs around 2,700 people.

 

Paul Polman, CEO, Unilever, says: Personal Care is a strategic category for Unilever and growing rapidly. Ten years ago it represented 20 percent of our turnover; strong organic growth has driven it to now reach over 30 percent, with strong positions in many of the emerging markets. Organic growth remains the cornerstone of our energizing ambition to double the size of Unilever whilst reducing our overall environmental impact. Bolt-on acquisitions such as Alberto Culver supplement organic growth and add powerful new brands to our portfolio."

 

The acquisition makes Unilever the world's leading company in hair conditioning, the second largest in shampoo and the third largest in styling, and significantly enhances its hair care presence in the United States, Canada, the UK, Mexico and Australasia, all of which will be significant hair care markets for years to come.