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Kellogg and Reckitt Benckiser join race for GSK nutrition unit

iStock / macgyverhh Kellogg and Reckitt Benckiser join race for GSK nutrition unit Reckitt Benckiser and Kellogg are said to have joined the race to purchase GSK consumer nutrition business – with Nestlé, Unilever, Mondelēz and Coca-Cola already reportedly interested in the business. As reported by Seeking Alpha ​, both Kellogg and Reckitt have completed initial evaluations of the GlaxoSmithKline business unit – which includes the Horlicks brand among its nutritional portfolio. Other major players said to be looking at acquiring the Horlicks brand include Unilever, Nestlé, Coca-Cola and Mondelēz. Earlier this year GSK said ​ it could look to divest some – or all – of its nutrition portfolio to help fund a €10.5 billion acquisition of Novartis’ stake in their consumer-health joint venture. GSK and Novartis formed the consumer health group in 2014 as part of an asset exchange that combined over-the-counter (OTC) drugs and nutritional supplements into one joint venture and saw Novartis acquire GSK’s portfolio of cancer drugs. In March this year, Novartis said the ‘time is right’ ​ for it to sell its 36.5% stake in the joint-venture to GSK – for a reported $13bn (€10.5bn). Central to any deal for GSK’s consumer nutrition portfolio will be the chance to acquire globally recognised malted beverage brand Horlicks – which is said to be of key interest and a good fit for several global FMCG companies including Coca-Cola, Kellogg’s, Nestlé and Unilever. At the time of announcing its strategic review in March, GSK noted that the majority of Horlicks sales come from India, where the drinks range is seen as a healthy and premium nutrition product. “GSK expects the outcome of the strategic review to be concluded around the end of 2018.

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