India: Business Merger HUL Acquires Horlicks and Other Healthcare Nutrition Products from GSK
GSK has sold Horlicks and its other consumer healthcare nutrition products in India to Hindustan Unilever (HUL). The deal also includes the merger of GSK India and Hindustan Unilever through which GSK now holds a 5.7 % stake in HUL.
London/UK – GSK has recently announced the completion of its divestment of Horlicks and other consumer healthcare nutrition products in India to Unilever, including the merger of its Indian listed entity, Glaxosmithkline Consumer Healthcare (GSK India), and Hindustan Unilever (HUL). This transaction was previously announced in December 2018 and its completion follows the receipt of necessary legal and regulatory approvals.
Through the merger of GSK India with HUL, GSK now holds a 5.7 % stake in HUL, an Indian public company listed on the Indian National Stock Exchange and Bombay Stock Exchange. GSK intends to monetise its holding in HUL at a time it considers appropriate, taking into account market conditions.
India remains an important growth market for GSK and the company is committed to investing in both its listed Pharmaceuticals business and its OTC and oral health brands in this country. As part of the transaction, HUL will distribute these consumer healthcare brands, which include market-leading Sensodyne, Crocin, Otrivin and Eno, for GSK in India. GSK will continue to be responsible for demand generation, portfolio strategy, R&D and marketing for these brands.
Brian Mc Namara, Chief Executive Officer, GSK Consumer Healthcare, said: “The close of this transaction signals the beginning of an exciting new chapter for GSK in India, enabling us to focus and build on our portfolio of brilliant, science-based OTC and oral health brands and to make these products available to more consumers across the country.”
GSK also completed the divestment of Horlicks brands rights and other consumer healthcare nutrition products to Unilever in other markets for cash proceeds equivalent to 490 million dollars. The Bangladesh closing is expected to follow later this quarter, subject to local procedures. GSK India is not part of the GSK Consumer Healthcare Joint Venture with Pfizer and the merger of GSK India and HUL therefore does not impact the joint venture.