Unilever to Acquire Alberto Culver for $3.7 billion

Organic growth remains the cornerstone of our energising ambition to double the size of Unilever whilst reducing our overall environmental impact.

Sep 27 2010 --- Unilever announced that it has entered into a definitive agreement to acquire the US-based Alberto Culver Company for US$3.7 billion in cash. Alberto Culver generated sales approaching US$1.6 billion and EBITDA of over US$250 million for the 12-month period ending June 30 2010.

Paul Polman, CEO of Unilever said: “We are delighted to be acquiring Alberto Culver. Their people have done an excellent job of building an impressive range of brands such as TRESemmé, VO5, Nexxus, St. Ives and Simple. These will complement Unilever’s existing portfolio of iconic brands like Dove, Clear and Sunsilk in hair care and Pond’s and Vaseline in skin and will help build on our strong global positions in both the hair care and skin care categories.”

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 US, Canada, the UK, Mexico and Australasia, all of which will be significant hair care markets for years to come.

The deal fulfils a number of key criteria for Unilever. It:

* Enhances Unilever’s presence in an attractive, high-growth category.
* Brings a portfolio of attractive brands which have together grown at above market growth rates in a competitive category.
* Provides Unilever with the opportunity to use its scale, reach and technology to take Alberto Culver’s brands to a new level in existing markets and extend their presence to new emerging markets.
* Adds successful styling and conditioning brands like TRESemmé and Nexxus to Unilever’s US portfolio, complementing its own brands such as Suave, Dove and Sunsilk.
* Adds complementary brands like VO5, TRESemmé and Simple that enable Unilever’s UK business to cover more price points across categories.

Polman continued, ”Personal Care is a strategic category for Unilever and growing rapidly. Ten years ago it represented 20% of our turnover; strong organic growth has driven it to now reach over 30%, with strong positions in many of the emerging markets.

“Organic growth remains the cornerstone of our energising 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.“

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

The acquisition is subject to regulatory approval, approval of the Alberto Culver shareholders and other customary closing conditions. It is expected to deliver significant synergies and, excluding restructuring costs, the acquisition will be accretive to EPS in the first full year.