Unilever to buy Russian skincare company Concern Kalina for $694 million
15 Oct 2011
Unilever, the world's second-largest consumer-goods company, today said that it will acquire Russian skincare company OAO Concern Kalina for 21.5 billion rubles ($694 million) to expand in the Russian market.
The London and Rotterdam-based company will buy 82 per cent of Kalina for about 16.7 billion rubles and make an offer for the rest once the transaction is completed.
Based in Ekaterinburg, central Russia, Kalina is the country's largest personal-care company with leading positions in skin and hair care segment. It owns well known brands like Black Pearl facial products and Silky Hands creams.
Unilever said that the expected turnover of Kalina to be around 13 billion rubles (€303 million) in 2011. The company has a strong, extensive distribution network and sells its products primarily in Russia, Ukraine and Kazakhstan.
The acquisition enhances Unilever's presence in Russia and adds to its portfolio of successful authentic Russian brands in skin care, hair care and oral care like Pure Line, Black Pearl, Silky Hands, 100 Recipes of Beauty and Forest Balm, complementing Unilever's own brands such as Dove, Sunsilk, Timotei and Clear.
In 2001, personal care represented 20 per cent of Unilever's turnover; but has now grown to over 30 per cent, with strong positions in many of the emerging markets.
''This will transform Unilever's personal care business in Russia, giving us leading positions in skin care and hair care, as well as establishing a presence in oral care. It will also strengthen and re-balance Unilever's portfolio and competitive position in Russia, an emerging market with considerable potential and one of our priority countries," said Paul Polman, CEO of Unilever.
''The coming together of our company with one of the most successful and best-known global companies represents a tremendous vote of confidence in the strength of our brands, the people who have built them and the potential of the Russian market. The combination with Unilever will also provide our employees with opportunities in one of the best companies in the world," said Alexander Petrov, CEO of Concern Kalina.