GSK has completed its divestment of Horlicks and other consumer healthcare nutrition products in India to Unilever,
This includes the merger of its Indian listed entity, GlaxoSmithKline Consumer Healthcare and Hindustan Unilever Limited (HUL). This transaction was previously announced in December 2018 and its completion follows the receipt of necessary legal and regulatory approvals.
Through the merger of GSK India with HUL, the former now holds a 5.7% stake in the latter.
India remains an important growth market for GSK and the company is committed to investing in both its listed pharmaceuticals business and its OTC and oral health brands in this country. As part of the transaction, HUL will distribute these consumer healthcare brands, which include market-leading Sensodyne, Crocin, Otrivin and Eno, for GSK in India. GSK will continue to be responsible for demand generation, portfolio strategy, R&D and marketing for these brands.
Brian McNamara, chief executive officer, GSK Consumer Healthcare, 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.”
Today GSK also completed the divestment of Horlicks brands rights and other consumer healthcare nutrition products to Unilever in other markets for cash proceeds equivalent to £397 million. Bangladesh closing is expected to follow later this quarter, subject to local procedures. GSK India is not part of the GSK Consumer Healthcare Joint Venture with Pfizer and the merger of GSK India and HUL therefore does not impact the Joint Venture, he said.
GSK Consumer Healthcare India has over 500 employees in India and category-leading brands such as Sensodyne, Eno, Crocin and Otrivin. Its Mission Health programme touches the lives of approximately 90,000 people by focussing on health and wellbeing with projects dedicated to neglected tropical diseases, dengue management, cleft and palate surgeries and plastic waste management.