Unilever moves to premium hair care

Unilever to buy TIGI product business and Advanced Education Academies for $411.5 million in cash.

Unilever, one of the world’s largest consumer goods companies, announced today that it has signed an agreement to acquire the global TIGI professional hair product business and its supporting advanced education academies for a cash consideration of $411.5 million.

Vindi Banga, Unilever President, Foods, Home & Personal Care, said, "This is an exciting acquisition for Unilever. It illustrates our determination to actively manage our portfolio in line with our stated strategic priorities, including a focus on personal care and higher growth areas.

“We already have a strong position in daily hair care and adding the salon brands will further build our position in the hair category. We can bring our world-class R&D expertise to it and offer greater opportunity for geographical expansion. TIGI’s strength in styling, and its fashion and beauty expertise will also help us raise the bar on innovation for our existing hair brands.”

Upon completion of the transaction, TIGI will operate as a stand-alone Global Business Unit within Unilever, reporting to Michael B. Polk, President, Unilever Americas.

Bruno Mascolo of TIGI, said, “We are excited to join the Unilever family. We have always been passionate about people, so to be able to advance the industry through our products and education by using Unilever’s impressive resources, while continuing to involve those who have made us successful – customers and employees – is very gratifying. We look forward to our future together.”

TIGI’s major brands include Bed Head®, Catwalk® and S-Factor®. TIGI has operations in the United States, United Kingdom, Italy, Germany and Australia, employs about 550 people and in 2008, had worldwide sales of approximately $250 million, with almost half coming from the United States.

Subject to regulatory approval, the deal is expected to be completed by the end of March 2009.

Notes:
* The consideration of $411.5 million is made on a cash and debt free basis. In addition, further limited payments related to future growth may be made contingent upon meeting certain thresholds.
* Launched in 1986, TIGI haircare products are sold worldwide primarily to and through hair salons.
* The professional hair products company has been owned and run by Bruno, Guy and Anthony Mascolo, creators of Toni & Guy – with their other brother Toni – who are Chief Executive Officer, Chairman of the Board, and Worldwide Creative Director of TIGI respectively.
* The three brothers are world-renowned hair stylists, whose TIGI haircare products have become synonymous with the latest styles and products in salons. An exclusive consulting agreement has been made with Anthony and Bruno. Anthony will continue to work in the business in his creative role and Bruno will continue to be an adviser.
* This transaction does not include the Toni & Guy salon business.
* Unilever currently offers consumers leading hair care brands like Dove, Axe for Men, Suave and Sunsilk in the US, as well as others such as Clear elsewhere in the world.

Safe Harbour
This announcement may contain forward-looking statements, including ’forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as ’expects’, ’anticipates’, ’intends’ or the negative of these terms and other similar expressions of future performance or results, including financial objectives to 2010, and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, the ability to complete planned restructuring activities, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group’s filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

About TIGI
http://www.tigihaircare.com