Read More>> MUMBAI: India is the second largest market for UnileverNSE -0.73 % globally. Its local unit, Hindustan Unilever, on Monday announced a Rs 31,700-crore deal to acquire GlaxoSmithKline Consumer Healthcare’s brands to boost its foods business that has historically been a subdued segment compared with its global portfolio. In a media briefing, HUL chairman Sanjiv Mehta and chief financial officer Srinivas Phatak outlined the reasons for and contours of the deal. Edited excerpts:
DEAL VALUATION
We believe it is the right value. Remember, it is not a cash deal. It’s an all-share deal. If you then start to project some of the growth, this deal in due course can be below 20 (times) enterprise value/ EBITDA. Of course, as the synergies and growth kick in, that’s how the equation will be. Also, we are buying brands which are category leaders. They are not small players, but big players in a big category.