Horlicks is now with HUL, boost the business to 10k crore
Mumbai: (PTI) FMCG major Hindustan Unilever Limited (HUL) Monday has approved the merger with GlaxoSmithKline Consumer Healthcare (GSKCH India). It is through an-all equity deal, valuing the total business of the latter at Rs 31,700 crore.
All equity merger by HUL
The transaction is an all equity merger with 4.39 shares of HUL being allotted for every share in GSKCH India. It sells consumer healthcare products, including popular drink brand Horlicks.
“HUL has reached a definite agreement with GSKCH India in this regard,” the company said in a statement. Commenting on the development, HUL CMD Sanjiv Mehta, Chairman and Managing Director. He said: “With this proposed strategic merger with GSKCH India, we will be expanding our portfolio with great brands into a new category catering to the nutritional needs of our consumers.”
post merger business exceed 10k crore
Post the acquisition, he said the turnover of the company’s Foods and Refreshment (F&R) business will exceed Rs 10,000 crore. It means the company will become one of the largest F&R businesses in the country.
The GSKCH India business delivered total turnover of around Rs 4.200 crore in the year ended March 2018, primarily through its Horlicks and Boost brands. The merger of GSKCH India with HUL will be on a basis of an exchange ratio of 4.39 HUL shares. For each GSKCH India Share, implying a total equity value of Rs 31,700 crore for 100% of GSKCH India.
Following the issue of new HUL shares, Unilever‘s holding in HUL will be diluted from 67.2% to 61.9%, it added.
The merger includes the totality of operations within GSKCH India, including a consignment selling contract to distribute GSKCH India’s over-the-counter and oral health products in India.