Today's topic is a bit off the world's economic matters, however it surely is an economic matter for such a glorious football club as Liverpool FC. There is a big "fuss" in the press and among the club's fans these days while its american owners are unwillingly planning to sell the club due to large debts.
In the past recent years it has become sort of a trend to buy English football clubs, however the history tells us that previously it were the cases when some oil-rich Russian billionaire Roman Abramovich and a mega-rich Arab family meaning that this game is for high-rollers. Americans taking over a British football club especially one like Liverpool should have thought well before putting a final signature on a document. These purchased clubs become more than just football clubs, or money making machines they become internationally recognised brand names.
Liverpool FC alongside Manchester United is according to the statistics is the most successful football club in the English Premier League which currently holds 18 national titles. But the club had the misfortune to be bought by American owners rather than rich Arabs or Russians and therefore the current standing in the league.
Current possible new owners of the club, New England Sports Ventures, look better organised and better funded than the current one. Despite its name, NESV are also Americans. And the lesson of English football teams to date is that American ownership has brought a major club to a major debt.
It is all quite linked with the way things are going in the current global economy. American owners are heavily-indebted and rely on financial engineering. It is the oil-rich Arabs and Russians who have the cash and will to buy English football clubs to penetrate them with millions of pounds.
K.S.
Tuesday, 19 October 2010
Wednesday, 13 October 2010
Unilever to acquire the US-based Alberto Culver
Due to the high volume of recent activities in the M&A sector I have decided to devote my attention to this particular topic.
Most of us people are familiar with products of such famous companies as Unilever and Sara Lee. We tend to use these products in our daily life. They vary from Unilever's Food Brands such as famous Lipton Tea and Flora butters to Home Care Brands such as Cif, Comfort and Persil that we also regularly use in our household.
(Picture Source: badlani.com)
From now on Unilever will also add very famous brands such as Radox, Sanex and Duschdas to its portfolio after the acquisition of US company Sara Lee's personal care division. Unilever said it had made a binding offer to buy the unit for €1.275 bn in cash. The company said that the purchase will allow it to strengthen its position in the skin cleansing and deodorant market in Europe. It will also expand the brands in emerging markets, which already account for 15pc of their annual sales (Telegraph.co.uk).
Paul Polman, Unilever's chief executive, said: "Personal care is a strategic category and a key growth driver for Unilever. This transaction builds on our portfolio in Western Europe and also in Asia. The Sara Lee brands enjoy strong consumer recognition, offer significant growth potential and are an excellent fit with Unilever's existing business."
This acquisition will strengthen its leading position in Western Europe as a whole. In addition, there is a significant growth potential of these brands in emerging markets, which already accounts for about 15% of sales a year.
Annual income from sales of Sara Lee's brands exceeds €750 million and annual EBITDA margin was €128 million at the end of June 2009.
Not so much time past since Unilever acquired one of the leading producers of personal care brands Sara Lee when it comes the time for Unilever to announce their acquisition of the US-based company Alberto Culver for US$3.7 billion in cash.
Same as the old time, the CEO of Unilever Paul Polman has something positive to say about their decision: “We are delighted to be acquiring Alberto Culver. Their people have done an excellent job of building an impressive range of brands such as TRESemmé, VO5, Nexxus, St. Ives and Simple. These will complement Unilever’s existing portfolio of iconic brands like Dove, Clear and Sunsilk in hair care and Pond’s and Vaseline in skin and will help build on our strong global positions in both the hair care and skin care categories.”
This acquisition makes Unilever the world’s leading company in hair conditioning, the second largest in shampoo and the third largest in styling, and significantly enhances its hair care presence in the US, Canada, the UK, Mexico and Australasia, all of which will be significant hair care markets for years to come.
However, this acquisition is still the subject to regulatory approval and also an approval of Alberto Culver shareholders.
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