Unilever Sheds Some Culver Brands - Analyst Blog
October 31 2011 - 1:45PM
Zacks
Unilever Plc.(UL) has decided to get rid of
some more of its Alberto Culver brands, and this time it is
shedding the Culver Specialty Brands division, which includes Mrs.
Dash, Molly McButter, Sugar Twin, Bakers Joy and Static Guard in
the US and Canada.
U.S.-based B&G Foods Inc. (BGS) has emerged
as an interested buyer, and Unilever has agreed to sell the brands
for a return of $325 million in cash.
The world’s leading manufacturer of fast moving consumer goods,
Unilever had completed its takeover of Chicago-based Alberto Culver
on May 10, 2011 for $3.7 billion.
Unilever agreed to part with Alberto VO5 brand in the United
States and to fully shed its own ‘Rave’ hair products to conform to
the directions of the United States Department of Justice (DOJ).
The DOJ had issued this prerequisite for the buyout of Alberto
Culver in order to reduce competition in the US hair care
market.
The acquisition added brands like TRESemme and Nexxus, plus
Alberto VO5, which Unilever can sell outside the US.
Following the ownership of Alberto, Unilever became the world’s
leading company in hair conditioning, the second largest in shampoo
and the third largest in styling.
Headquartered in London, Unilever manufactures and sells
consumer products in more than 100 countries under brands such as
Hellmann’s, Lipton, Surf, Dove, Suave and Vaseline. Unilever had
sales of $62 billion in 2010. However, the presence
of Procter & Gamble Co.
(PG), a strong competitor, concerns us.
Unilever holds a Zacks #3 Rank, which translates into a
short-term Hold rating.
B&G FOODS CL-A (BGS): Free Stock Analysis Report
PROCTER & GAMBL (PG): Free Stock Analysis Report
UNILEVER PLC (UL): Free Stock Analysis Report
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