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Unilever acquires Alberto Culver

October 4th, 2010

Unilever has just acquired Alberto Culver, and according to Euromonitor International’s Beauty & Personal Care Industry Analyst Oru Mohiuddin, some analysts are asking why Unilever has made this move when the company had previously stated it wants to focus on emerging markets. According to Mohiuddin, the benefits of Unilever’s acquisition of Alberto-Culver are as  follows:

  • Unilever has increased its hair care portfolio
  • Unilever plans to roll out its newly acquired value hair care brands in Latin America, where it already has a large operation
  • Unilever can finally penetrate the hair care market in the United States
  • Alberto-Culver recently acquired an organic skin care brand called Simple that has immense global potential, which Unilever now owns
  • Unilever was coming under market pressure for deodorant expansion, which it gained in the acquisition

Mohiuddin continues the discussion by stating that Unilever did not pay too much for Alberto-Culver. The price tag was large, but the global potential of the newly acquired brands are immensely beneficial to Unilever.

Lastly, it is expected that  L’Oreal and Procter and Gamble will be going shopping for new acquisitions in response to Unilever’s move. Beiersdorf, the company behind the Nivea brand, could be next as a potential acquisition target.

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Oru Mohiuddin

Oru Mohiuddin is a Strategy Analyst for Euromonitor International. She has a Master in International Development from University of Birmingham and has been working in the company since 2007. Professional interests include tracking beauty trends with a particular focus on colour cosmetics, hair care and evaluating company performance.

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