Unilever to buy Alberto Culver for $3.7-bn in cash

Unilever, the €40-billion Anglo-Dutch consumer goods giant today announced that it is acquiring the US-based hair and skin beauty care group Alberto Culver Company for $3.7 billion in cash to strengthen its global position in the hair care segment.

Unilever is offering $37.50 per share, representing a 33-per cent premium to Alberto Culver's 12-month volume weighted average share price and an 18 percent premium to its all-time high closing share price achieved earlier this year.

Under the proposed acquisition, Unilever will acquire a portfolio of more than 90 brands, including the Sanex and Duschdas brands across a number of different categories in 19 European countries.

The acquisition also pits Unilever in direct competition in the hair and skin beauty care segment with long time rival Procter & Gamble in the North American market.

Illinois-based Alberto Culver manufactures leading beauty care and other personal care brands including TRESemmé, Alberto VO5, Nexxus, St. Ives, Simple and Noxzema in the US, marketed globally.

With 2009 revenues of $1.43 billion, it is also the second largest producer in the US of products for the ethnic hair care market with leading brands including Motions and Soft & Beautiful.