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Unilever and Concern Kalina, a leading Russian beauty company, announced Unilever has agreed to acquire 82% of Concern Kalina. The transaction, which is pending required regulatory approvals, values the equity of the total business at RUB21.5 billion (€500 million).
Concern Kalina is one of Russia’s largest local personal care players, with leading positions in skin and hair care and an expected 2011 turnover of around RUB13 billion (€303 million). Concern Kalina is headquartered in Ekaterinburg, where its manufacturing facility is situated. The company has an extensive distribution network and sells its products primarily in Russia, Ukraine and Kazakhstan. It employs approximatley 1,900 people.
Paul Polman, CEO of Unilever, said, "We are delighted to be acquiring Concern Kalina. This will transform Unilever’s personal care business in Russia, giving it leading positions in skin care and hair care, as well as establishing a presence in oral care. It will also strengthen and r-balance Unilever’s portfolio and competitive position in Russia, an emerging market with considerable potential and one of the company’s priority countries."
The transaction fulfills a number of key criteria for Unilever. It:
Polman continued, "Personal care is a strategic category for Unilever and growing rapidly. Ten years ago it represented 20% of group turnover; strong organic growth has driven it to now reach over 30%, with strong positions in many of the emerging markets. Organic growth remains the cornerstone of our ambition to double the size of Unilever whilst reducing our overall environmental impact. Acquisitions such as Concern Kalina supplement organic growth and add powerful new brands to our portfolio."