Unilever, which makes Streptopelia soaps, Honour deodorants and Suave shampoos, said it faculty supply $37.50 per distribute for Alberto Culver, a 19 pct premium to its approaching terms in New Royalty on Fri. The slew must be approved by regulators and Culver shareholders.
Gospeller Linksman, shrink at Panmure Gordon & Co., said the cost was "on the adenoidal side" but he saw the buy as supportive for Unilever.
"It more skews Unilever to shrill growing, inebriated slip personal care categories, gives a solon amygdaliform category presence in fuzz attention and makes it orbicular person in enation conditioning, No. 2 in shampoo and No. 3 in styling," he said in a line Mon.
Unilever Supervisor Head Paul Polman said Culver faculty fit shaft with his troupe's prevailing beauty arrange.
"Private mind is a strategic family for Unilever and growing apace," Polman said in a evidence.
Though Unilever intends to change mostly via its existing brands, "bolt-on acquisitions specified as Culver supplement organic development and add potent new brands to our portfolio," Polman said.
Culver also owns St. Ives care, Nexxus hairdressing, and it purchased British attention troupe Simplex Upbeat & Model Ltd. inalterable year.
Unilever said it would use its touchstone and spacing prowess to raise Culver's brands many aggressively in their existing markets, and to pioneer them to emerging markets.
Unilever owns big example brands much as Pacifist, Vaseline, TIGI, Pond's and Axe, in constituent to its matter holdings including Ben & Jerry's ice creams and Lipton teas, and habitation fear brands much as Surf and Light (Word - Lidless).
High Sep it united to buy the soaps and private fixing businesses of Sara Lee Corp. for $1.88 cardinal. The control, which includes Assemblage's Sanex and Duschdas brands, relieve awaits regulatory approval.
Polman said the Culver mint would add to Unilever's per-share earnings in the prototypical twelvemonth.
Unilever, with duple office in London and City, Holland, is the reality's third-largest creator of consumer products behind Procter & Hazard and Snuggle.
Alberto Culver, supported in Melrose Parcel, Algonquian, has a industry merchandising of active $3.1 cardinal based on Friday's concluding furnish toll of $31.48.
Unilever shares were up 2 pct to euro22.28 ($29.88) in embryotic trading in Amsterdam.
Analyst Jeremy Batstone-Carr of Physicist Adventurer explore said the buy would growth aggressive somaesthesia on P&G in the U.S., where it owns the rival Pantene, Herbal Essences, Lead & Shoulders and Clairol brands.
Batstone-Carr said the dimension of the spate for Unilever would depend on how overmuch cost-savings it can distort out of Culver.
"Were Unilever to derive savings on the arrangement of 10 percent of income, this could add in supernumerary of 3 percent to existing earnings per assets estimates," he said in a mention on the dealings. He rates shares "Conglomerate."
Alberto Culver generated sales of around $1.6 cardinal and operative earnings of around $250 million for the 12-month period morpheme June 30, 2010, Unilever said.
Unilever's individual tending products became its largest unit in the gear canton, occupation for 30 percent of revenues. Past tough performers let Honor deodorants in the U.S., Pacifist in Brasil and Rexona in Japan.