Alberto Culver Company (NYSE: ACV), a $1.6 billion in revenue manufacturer and marketer of beauty care brands including TRESemme, Alberto VO5, Nexxus, St. Ives, Simple and Noxzema,hasannounced that it has entered into a definitive agreement in which Unilever will acquire all of the outstanding shares of Alberto Culver for $37.50 per share in cash, valuing the company at approximately $3.7 billion. The transaction is structured as a merger and is subject to approval by owners holding a majority of Alberto Culver’s outstanding shares, regulatory approvals and other customary closing conditions. The merger agreement was unanimously approved by the Boards of Directors of both companies. The announcement was made by Carol Lavin Bernick, executive chairman, on behalf of the Alberto Culver Board of Directors.
The $37.50 per share price 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.
Bernick 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. Our shareholders have benefitted year in and year out from their efforts. We are enormously proud of our people and what they have accomplished.
However, viewing the global marketplace today, we believe that for these brands to achieve their full potential, they need to be able to compete in all major global markets. Given the resources this would require, 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."
V. James Marino, president and CEO of Alberto Culver, said, "The credit for our growth goes to an outstanding Alberto Culver team. Our people exhibit a sense of urgency and demonstrate a commitment to growth through brand building and innovation that have consistently made us winners in our categories. 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."
BDT & Company, LLC acted as Alberto Culver’s financial advisor on the transaction. Credit Suisse Securities (USA) LLC advised by providing a fairness opinion to Alberto Culver’s board of directors. Sidley Austin LLP served as Alberto Culver’s legal advisor on the transaction.
You can read falsies mascara review at Laser Beauty Cosmetics
Take a look at our most viewed Laser Hair Removal article at Laser Beauty Cosmetics
