Unilever to acquire Alberto Culver

The transaction has been agreed by the boards of directors of both companies, but is subject to approval by Alberto’s majority shareholders.

Carol Levin Bernick, executive chairman at Alberto Culver said "Throughout our history, and particularly in the last decade, we have grown Alberto Culver's key brands' sales and market shares at a pace exceeding our highly competitive categories' growth rates. This has been the result of a combination of innovation, excellent service and entrepreneurial drive, all planned and executed by an incredibly talented team.”​

Acquisition will aid in expansion into global markets​

The manufacturer and marketer of beauty care brands including TRESemme, Alberto VO5, Nexxus, St. Ives, Simple and Noxzema, said joining Unilever will help it to compete more effectively on a global scale.

“Our brands' chances for success are better served by being merged into a larger organization with an even larger global footprint than Alberto Culver's. We believe Unilever is such a company and we believe we are maximizing value for our shareholders through this agreement,”​ Bernick continued.

Alberto Culver’ president and CEO V. James Marino added: “Unilever has a long and distinguished history, and we look forward to our brands making an important contribution to the company's growth going forward. Both we and Unilever are committed to moving expeditiously to closing.”​

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Unilever happy to expand its portfolio​

Unilever, which already owns brands such as Dove, Sunsilk, Pond's and Vaseline, said the proposed acquisition of Alberto Culver would make it the world's leading company in hair conditioning and second largest in shampoo.

The global food and personal care company is confident the new brands will add to its portfolio and enable its business in the UK to cover more price points across a number of categories.

The $37.50 per share price offer represents a 33 percent 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.

BDT & Company, LLC acted as Alberto Culver's financial advisor on the transaction. Credit Suisse Securities advised by providing a fairness opinion to Alberto Culver's board of directors and Sidley Austin served as legal advisors.