Alberto Culver enters into agreement to buy Simple for £240 million
The company is to purchase Simple from private-equity group Duke Street, which bought the business in 2004 for £225m ($366m), a deal that included the Li-lets feminine hygiene brand alongside the Simple brand.
Since then, Duke Street has sold off the Li-lets business in 2006 for £80m ($130m) and has concentrated on growing the Simple brand in the UK.
Strong UK position
In 2008, UK sales grew by 11 per cent to £61m ($99m), and Simple is now the third best-selling women’s skincare brand in the country. Estimated net sales for the 2009 calendar year are approximately £65m ($106m).
Alberto Culver’s biggest foreign market is the UK, and completing the acquisition will see it become the number two skin care manufacturer in the country, complementing its existing number two position in hair care, according to the company.
Growing skincare portfolio
Carol Lavin Bernick, executive chairman of Alberto Culver said in a statement that the acquisition of a well-known, respected brand “reaffirms our focus on beauty care and provides us with a terrific opportunity to execute our strategy of expanding and growing our skincare portfolio.”
The purchase price will be paid substantially from existing cash, and the transaction is expected to be completed by the end of the calendar year, according to Alberto Culver.
Company president and CEO, James Marion added: “this is a great acquisition for Alberto Culver, not only from a strategic standpoint, but from a financial perspective as well. This transaction will allow us to efficiently deploy our cash to enhance shareholder value.”
Alberto Culver brands
The current portfolio of Alberto Culver personal care brands includes TRESemmé, Alberto VO5 and St Ives, which are manufactured, marketed and distributed both in the United States and internationally.
It is also the second largest producer in the US of products for the ethnic hair care market, with leading brands such as Motions and Soft & Beautiful, according to the company.
