Unilever moves to premium hair care
Unilever to buy TIGI product business and Advanced Education Academies for $411.5 million in cash.
Unilever, one of the world's largest consumer goods companies, announced today that it has signed an agreement to acquire the global TIGI professional hair product business and its supporting advanced education academies for a cash consideration of $411.5 million.
Vindi Banga, Unilever President, Foods & Refreshment, Home and Beauty & Personal Care, said, "This is an exciting acquisition for Unilever. It illustrates our determination to actively manage our portfolio in line with our stated strategic priorities, including a focus on beauty & personal care and higher growth areas.
"We already have a strong position in daily hair care and adding the salon brands will further build our position in the hair category. We can bring our world-class R&D expertise to it and offer greater opportunity for geographical expansion. TIGI's strength in styling, and its fashion and beauty expertise will also help us raise the bar on innovation for our existing hair brands."
Upon completion of the transaction, TIGI will operate as a stand-alone Global Business Unit within Unilever, reporting to Michael B. Polk, President, Unilever Americas.
Bruno Mascolo of TIGI, said, "We are excited to join the Unilever family. We have always been passionate about people, so to be able to advance the industry through our products and education by using Unilever's impressive resources, while continuing to involve those who have made us successful – customers and employees – is very gratifying. We look forward to our future together."
TIGI's major brands include Bed Head®, Catwalk® and S-Factor®. TIGI has operations in the United States, United Kingdom, Italy, Germany and Australia, employs about 550 people and in 2008, had worldwide sales of approximately $250 million, with almost half coming from the United States.
Subject to regulatory approval, the deal is expected to be completed by the end of March 2009.
The consideration of $411.5 million is made on a cash and debt free basis. In addition, further limited payments related to future growth may be made contingent upon meeting certain thresholds.
Launched in 1986, TIGI haircare products are sold worldwide primarily to and through hair salons. The professional hair products company has been owned and run by Bruno, Guy and Anthony Mascolo, creators of Toni & Guy – with their other brother Toni – who are Chief Executive Officer, Chairman of the Board, and Worldwide Creative Director of TIGI respectively.
The three brothers are world-renowned hair stylists, whose TIGI haircare products have become synonymous with the latest styles and products in salons. An exclusive consulting agreement has been made with Anthony and Bruno. Anthony will continue to work in the business in his creative role and Bruno will continue to be an adviser.
This transaction does not include the Toni & Guy salon business.
Unilever currently offers consumers leading hair care brands like Dove, Axe for Men, Suave and Sunsilk in the US, as well as others such as Clear elsewhere in the world.
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