Supplier News Breaks Archives
To close Alberto Culver deal, Unilever agrees to divest brands
May 6th, 2011
LONDON and MELROSE PARK, Ill. – In an agreement with the U.S. Department of Justice, Unilever plans to divest the venerable Alberto VO5 hair care brand so it can wrap up its acquisition of Alberto Culver Co.
Unilever said Friday that under the agreement, it is slated to sell off the Alberto VO5 from the Alberto Culver portfolio and the Rave hair brand from its own portfolio. Upon finalizing the transaction, Unilever will continue to advance the growth potential of the Alberto VO5 brand in markets outside the United States, such as the United Kingdom, South Africa and Australasia, where the brand has a strong consumer base, according to the company.
The $3.7 billion acquisition, announced in late September, is expected to close on or about May 10, according to the company. Alberto Culver shareholders approved the cash deal in December.
"We are very pleased to have received the regulatory clearances necessary for us to complete the acquisition," Unilever chief executive officer Paul Polman said in a statement. "This acquisition is a further step in Unilever's transformation. The deal enhances Unilever's presence in attractive, high-growth categories and brings a portfolio of desirable brands that are gaining share. It also gives Unilever the opportunity to use its scale, reach and technology to take Alberto Culver's brands to a new level in existing markets and enables us to use our unparalleled presence in emerging markets to extend them further."
Besides Alberto VO5, Alberto Culver's beauty care and personal care brands include TRESemme, Nexxus, St. Ives, Simple and Noxzema in the United States and internationally. It is also the second largest producer in the U.S. of products for the ethnic hair care market with leading brands including Motions and Soft & Beautiful. It also offers the household/grocery brands Mrs. Dash and Static Guard.
When the acquisition was announced, Unilever said the deal will make it the world's leading provider of hair conditioning, the second-largest in shampoo and the third-largest in hair styling. Unilever's beauty and personal care brands include Dove, Clear, Suave, TIGI (Bed Head, Catwalk and S-Factor) and Sunsilk in hair care and Pond’s and Vaseline in skin care. The company added that the acquisition also will significantly enhance its hair care position in the United States, Canada, the United Kingdom, Mexico and Australasia.