On the heels of the September 27, 2010, news regarding Unilever's acquisition of Alberto Culver, some analysts are asking why Unilever has made this move when the company had previously stated it wants to focus on emerging markets. According and to Euromonitor International's beauty and personal care industry analyst Oru Mohiuddin, the benefits of Unilever's acquisition of Alberto-Culver are as follows:
- Unilever has increased its hair care portfolio.
- Unilever plans to roll out its newly acquired value hair care brands in Latin America, where it already has a large operation.
- Unilever can finally penetrate the hair care market in the United States.
- Alberto-Culver recently acquired an organic skin care brand called Simple that has immense global potential, which Unilever now owns.
- Unilever was coming under market pressure for deodorant expansion, which it gained in the acquisition.
Mohiuddin continues the discussion in a video presentation, stating that Unilever did not pay too much for Alberto-Culver. The price tag was large, but the global potential of the newly acquired brands are immensely beneficial to Unilever.
Lastly, it is expected that L'Oréal and Procter and Gamble will be going shopping for new acquisitions in response to Unilever's move. Beiersdorf, the company behind the Nivea brand, could be next as a potential acquisition target.
