Consumer products maker Unilever NV said on Monday it has agreed to buy Alberto Culver Co — the US maker of beauty products such as TRESemme, VO5 and Simple — for $3.7 billion in a management-backed deal.
Unilever, which makes Dove soaps, Axe deodorants and Suave shampoos, said it will offer $37.5 per share for Alberto Culver, a 19 per cent premium to its closing price in New York on Friday. The deal must be approved by regulators and Alberto Culver shareholders. Unilever Chief Executive Paul Polman said. “Personal Care is a strategic category for Unilever and growing rapidly.”
Although Unilever intends to grow mostly via its existing brands, “Bolt-on acquisitions such as Alberto Culver supplement organic growth and add powerful new brands to our portfolio,” Polman said. The deal would add to Unilever’s per-share earnings in the first year.
Unilever is the world’s third-largest maker of consumer product. Some of its other well-known products include Ben & Jerry’s ice cream and Lipton tea. Alberto Culver has a market cap of about $3.1 billion based on Friday’s closing stock price of $31.48.