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GlaxoSmithKline Consumer Healthcare Limited merges with Hindustan Unilever Limited, heralds a new milestone in India’s nutrition story


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starting a new journey together

Hindustan Unilever Limited (HUL), India’s largest fast-moving consumer goods company, today announced that it has successfully completed the merger of GlaxoSmithKline Consumer Healthcare Limited (GSKCH) with HUL. This merger was announced on 3rd December 2018 and was subject to obtaining necessary approvals, which have now been secured. This is one of the largest deals in the FMCG sector in recent times and will lead to significant value creation for all stakeholders.

In addition, the Board of Directors of HUL today approved HUL acquiring the Horlicks Brand for India from GSK for a consideration of Euro 375.6 mln (INR 3045 Cr), exercising the option available in the original agreement made between Unilever and GSK. This will enable HUL to utilize cash on its balance sheet and create value for shareholders. In addition, it will enable HUL to drive better salience in a local context. The other brands which were under the ownership of GSKCH like Boost, Maltova and Viva come to HUL’s brand portfolio by virtue of the merger.

A unique opportunity to acquire the No 1 Health Food Drinks (HFD) portfolio in the largest HFD market globally

The merger is in line with HUL’s strategy to build a sustainable and profitable Foods and Refreshment (F&R) business in India by leveraging the megatrend of health and wellness. GlaxoSmithKline Consumer Healthcare Limited is the undisputed leader in the HFD category, with iconic brands such as Horlicks and Boost, and a product portfolio supported by strong nutritional claims. Horlicks, with a volume share of close to 50%, was introduced to India in the 1930s and has been an everyday nutrition staple in households across generations. This merger will bolster HUL’s focus to build a profitable and sustainable Nutrition business in India.

HUL will unlock significant synergies both from revenue and costs

The nutrition and health drinks category remains under-penetrated in India and HUL is well positioned to further develop the market given the extent of its reach and capabilities. As shared earlier, HUL will be partnering with GSK (via a consignment selling arrangement) to distribute brands of the GSK Consumer Healthcare family in India. This partnership, with world class brands from GSK (like Eno, Crocin, Sensodyne etc.) and HUL’s distribution strength can unlock value for GSK and build further Hindustan Unilever’s go-to-market capabilities.

Sanjiv Mehta, Chairman and Managing Director, Hindustan Unilever said, “Brands such as Horlicks and Boost are iconic, and we are excited to have them in the Hindustan Unilever fold. The merger gives us a unique opportunity to live our purpose and serve India where Nutrition related challenges form the largest causes of disease– Malnutrition and Micronutrient deficiency - and aligns well with the Government’s ambitious Swasth Bharat and Poshan Abhiyan programs. I am delighted to welcome the 3500 – strong Nutrition Team to the HUL family. Both organizations have common values coming from a lineage of respected parent companies and a shared heritage of building iconic trusted brands.

In the current context, the focus of the company has been to ensure that all our people remain safe and we do our best to keep supply lines running for essential products. In these difficult times, we are joining hands with the Government in the fight against COVID 19’’

About the deal

GlaxoSmithKline Consumer Healthcare Limited’s business delivered total turnover of around INR 45 billion in the year ended March 2019, primarily through its Horlicks and Boost brands. The merger of GlaxoSmithKline Consumer Healthcare Limited with HUL has been on the basis of an exchange ratio of 4.39 HUL shares for each GlaxoSmithKline Consumer Healthcare Limited share. Following the issue of new HUL shares, Unilever‘s holding in HUL will be diluted from 67.2% to 61.9%.

About Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) is India's largest Fast-Moving Consumer Goods company with its products touching the lives of nine out of ten households in India. HUL works to create a better future every day.


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