Unilever to acquire Quala’s beauty & personal care and home care brands
London – Unilever announced today that it has signed an agreement to acquire the beauty & personal care and home care brands of Quala, the Latin American consumer goods company.
Founded in 1980, Quala now has a strong presence in ten countries in Latin America: Colombia, Ecuador, Mexico, Dominican Republic, Haiti, Peru, El Salvador, Honduras, Nicaragua and Guatemala. Its beauty & personal care and home care portfolio includes leading local brands Savital/Savilé (Haircare and Skin Cleansing), eGo (Male Haircare and Styling), Bio-Expert (Haircare), Fortident (Oral Care) and Aromatel (Fabric Conditioners); with a combined turnover of over USD 400M in 2016.
Paul Polman, CEO Unilever, said: “We are delighted to be acquiring Quala’s beauty & personal care and home care portfolio. Quala has done an outstanding job of building strong and competitive local brands. The inclusion of these brands in our stable will consolidate our leading position in Haircare globally, and contribute to our Oral Care and Male Grooming businesses, complementing very well our existing offering.”
Miguel Kozuszok, Executive Vice President, Latin America, Unilever, added: “Quala’s brands will give us an even sounder footing in Latin America, broadening our offering in Mexico, Colombia and Ecuador. We look forward to continuing to grow these great brands.”
Michael De Rhodes, Chairman, Quala, said: “Following a strategic review, we have decided to focus our efforts and resources on accelerating growth on our core business. As a result of this transaction Quala intends to increase its investment in innovation, continue broadening our product and brand portfolio, and maintaining our leadership positions in the region.”
Quala’s Savital/Savilé is the number one brand in haircare by volume in Colombia, and has a good presence in the rest of the North Latin America region. It uses Aloe Vera as the core ingredient across the brand, and incorporates other functional ingredients – such as Keratin, Biotin and Argan Oil – as variants that appeal to consumers. eGo is the number one male hair grooming brand in Colombia and Mexico, and has presence across eight markets; with 85% of its turnover coming from styling.
Bio-Expert is a Haircare brand with a strong, on-trend natural positioning. Fortident is the number two oral care brand in Colombia and Ecuador, showing steady market share growth. Aromatel is a strong brand that rapidly achieved the number two position in fabric conditioners in Colombia and Ecuador, and will complement well Unilever’s laundry business in those markets.
“The acquisition of Quala’s beauty & personal care and homecare business reinforces Unilever’s commitment to our long-term model of compounding growth and sustainable value creation. The active management of the portfolio through bolt-on acquisitions such as this one, and the sustained investment in our existing brands, will help us deliver continued growth ahead of our markets,” Polman added.
Terms of the deal were not disclosed. The acquisition is subject to regulatory approvals and customary closing conditions.
100 Victoria Embankment
London EC4Y 0DY
+44 (0) 207 822 5252
This announcement may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vision’, or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Unilever Group (the “Group”). They are not historical facts, nor are they guarantees of future performance.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: Unilever's global brands not meeting consumer preferences; Unilever's ability to innovate and remain competitive; Unilever's investment choices in its portfolio management; inability to find sustainable solutions to support long-term growth; customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain; the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; successful execution of acquisitions, divestitures and business transformation projects; economic and political risks and natural disasters; the effect of climate change on Unilever's business; financial risks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters. These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including in the Annual Report on Form 20-F 2016 and the Unilever Annual Report and Accounts 2016.