Concern Kalina, Russian largest local personal care company, is about to become Unilever’s latest acquisition. After having acquired TIGI and Alberto Culver hair products as well as Sara Lee’s cosmetic brands in 2009 and 2010, the Anglo-Dutch conglomerate continuous to strengthening its personal care portfolio.

Unilever has agreed to acquire 82% of Concern Kalina for 21.5 billion roubles (500 million euros).

Headquartered in Ekaterinburg, Concern Kalina sells its products primarily in Russia, Ukraine and Kazakhstan and holds leading positions in skin and hair care. The company employs around 1,900 people and expects a 2011 turnover of around 303 million euros.

According to Paul Polman, CEO of Unilever, the acquisition of Concern Kalina, will strengthen and rebalance Unilever’s portfolio and competitive position in Russia, giving the group leading positions in skin care and hair care, as well as establishing a presence in oral care.

Russian high-growth personal care market is a top priority to Unilever and the transaction adds to its portfolio successful brands like Pure Line, Black Pearl, Silky Hands, 100 Recipes of Beauty and Forest Balm.

"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,” said Polman. "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."

The transaction, which is expected to complete by the end of 2011, is subject to regulatory approvals. It implies an enterprise value for 100% of Concern Kalina of approximately RUB 25.9 billion (EUR604 million). On completion Unilever intends to launch a Mandatory Tender Offer to acquire the remaining shares that are not part of the initial agreement, at such time and on terms mandated by Russian law.