Unilever, one of the world’s leading consumer goods companies, is to acquire 82 percent of Concern Kalina, a leading Russian beauty products company for 390 million euros ($536 mln), the companies said in a joint statement.
Kalina's shares surged 40 percent on the news.
The acquisition is expected to be completed by the end of 2011 and Unilever intends to acquire the remaining 18 percent.
"We are delighted to be acquiring Concern Kalina," Unilever's CEO Paul Polman was quoted in a statement as saying.
"This will transform Unilever’s personal care business in Russia, giving us leading positions in skin care and hair care, as well as establishing a presence in oral care. It will also strengthen and re-balance Unilever’s portfolio and competitive position in Russia, an emerging market with considerable potential and one of our priority countries."
Kalina's leading brands in the Russian personal care market are Black Pearl, Clean Line, 100 Recipes of Beauty and Silky Hands in skin care, and 32 and Forest Balsam in oral care.