Unilever (ULVR) has agreed to buy GlaxoSmithKline’s Health Food Drinks (GSK HFD) in India for €3.3bn ($3.8bn).
The agreement will increase Unilever’s presence in the health-food market in high-growth emerging markets such as India.
Horlicks and Boost
The deal will see Unilever acquiring the popular hot malted beverage Horlicks and Boost brand, along with other healthcare nutrition products.
Horlicks, a nutritional malt milk drink, is currently the most widely consumed packaged beverage in India, after bottled water. Boost, an energy drink, is also among the top three health food drink brands in India.
In 2018 GSK HFD had a turnover of around €550 million, primarily through the Horlicks and Boost brands, with almost 90% of the turnover coming from India.
Nitin Paranjpe, President, Food & Refreshment, 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.”
“Horlicks and Boost will add to our stable of purpose driven brands that help consumers to get more out of their lives.”
The deal, subject to customary regulatory and shareholder approvals, is expected to be completed within 12 months.
Unilever has 161,000 employees and generated sales of €53.7 billion in 2017.