GSK has divested the rights for its Horlicks brand and other consumer healthcare nutrition products to Unilever for cash proceeds equivalent to £397m
GlaxoSmithKline (GSK) has completed its planned divestment of Horlicks and other consumer healthcare nutrition products in India to the UK-based consumer goods company Unilever.
The company has divested the rights for its Horlicks brand and other consumer healthcare nutrition products to Unilever for cash proceeds equivalent to £397m.
The sale includes the merger of its India-based business GlaxoSmithKline consumer healthcare (GSK India) with Hindustan Unilever (HUL), subject to the receipt of certain legal and regulatory approvals.
GSK Consumer Healthcare chief executive officer Brian McNamara said: “The close of this transaction signals the beginning of an exciting new chapter for GSK in India, enabling us to focus and build on our portfolio of brilliant, science-based OTC and Oral Health brands and to make these products available to more consumers across the country.”
HUL will distribute Sensodyne, Crocin, Otrivin and Eno in India, for GSK
Following the combination of its GSK India with HUL, the company holds a 5.7% stake in HUL, which was listed on the Indian National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Under the terms of the transaction, HUL will distribute the consumer healthcare brands, which include the Sensodyne, Crocin, Otrivin and Eno, for GSK in India.
GSK said that India is an important growth market and is committed to investing in pharmaceuticals business, OTC and Oral Health brands in the country. The company will continue its demand generation, portfolio strategy, R&D and marketing for its brands.
GSK consumer healthcare is a joint venture with Pfizer and the merger of GSK India with HUL is not expected to impact the existing joint venture, said the company.