Unilever PLC (UL, ULVR.LN), the Anglo-Dutch consumer products
giant, said Monday that it has entered into a definitive agreement
to acquire Alberto Culver Co. (ACV, ACVA), maker of the Alberto VO5
hair-care products, for $3.7 billion in cash.
Unilever's offer of $37.50 a share represents a 33% premium to
Alberto Culver's 12-month volume weighted average share price and
an 18% premium to its all-time high closing share price achieved
earlier this year, Alberto Culver said in a separate statement.
Unilever said in its statement that the acquisition makes it the
world's leading company in hair conditioning, the second largest in
shampoo and the third largest in styling.
Unilever Chief Executive Paul Polman said: "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," he added.
Alberto Culver has operations in nine countries, including the
U.S., Canada, Argentina, Mexico, the U.K., South Africa and
Australasia. It has six manufacturing facilities and employs around
2,700 people. It generated sales approaching $1.6 billion and
Ebitda of over $250 million for the year ending June 30.
The acquisition is still subject to regulatory approval,
approval of Alberto Culver shareholders and other customary closing
conditions.
Excluding restructuring costs, the acquisition will be accretive
to EPS in the first full year, Unilever said.