Apr 05, 2009 11:48 PM
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Dabur India Ltd today announced the acquisition of72.15% ofFem Care Pharma Ltd(FCPL), a leading player in the women’s skin care products market, forRs 203.7 Crores **in an all-cash deal.
Theboard of directors of Dabur India Ltd approved the acquisition at aboard meeting held in Mumbai today. The transaction ascribes a priceper share of Rs 800, which translates into an equity valuation of Rs282.4 Crores and an enterprise valuation of approximately Rs 300 Croresof Fem Care Pharma Ltd. Dabur will make an open offer for an additional20% shares in the Company as required under the takeover regulations.
“Acquisitionof Fem Care Pharma is in line with our strategy to aggressively expandDabur’s scale of operations and strengthen its presence in the fastmoving consumer goods(FMCG) space. This transaction would give Daburan entry into the high-growth skin care market with an establishedbrand name ‘FEM’. Further, Dabur also has the potential to extend thebrand into newer and related skin care categories, ” said Dr. Anand Burman, Chairman, Dabur India Ltd.
FemCare Pharma Ltd, which has a leadership position in the fairness bleachcategory and a strong market position in hair removal and liquid soapcategory, is best known for its brand ‘FEM’. The other brands in itsportfolio include Oxybleach cream, Botanica anti-ageing cream, Stratumcolour protecting hair conditioners, SAKA men’s bleach and Bambi fabricsofteners. FCPL, which reported a consolidated net profit of Rs 9.75crores in the first half of the 2008-09 fiscal on a turnover of Rs54.45 crores, also has a sizeable international market presence inmarkets such as Yemen, Maldives, Mauritius, Malaysia, UAE, Oman etc.
“Theacquisition brings to Dabur a portfolio of well-known household brandsthat enjoy a pole position in their respective categories, offering usa strong platform to enter newer product categories and markets. Fem’sbrands fit in well with Dabur’s future growth plans, both for India andinternational markets. As with our previous acquisition and subsequentintegration of Balsara’s Hygiene and Home products businesses, the FemCare Pharma Ltd transaction too would offer substantial synergies forexpanding the reach of Fem’s brands in all our geographies as well asbetter management of overall system costs, ” said Mr. Sunil Duggal, CEO, Dabur India Ltd.
“Thestrengthsof Dabur will help expand the distribution of Fem’s brands across Indiaand fuel faster growth for the company, both in India and abroad, thereby enhancing shareholder value, ” saidMs Sunita Ramnathkar, Joint Managing Director, Fem Care Pharma Ltd.
“AsDabur gains access to Fem’s research capabilities, we believe it willbe able to broaden the company’s product portfolio and furthercapitalize on the emerging opportunities in domestic and internationalmarkets, ” said Mr. Sunil H. Pophale, Chairman & Managing Director, Fem Care Pharma Ltd.
KPMGCorporate Finance was the financial advisor to the promoters of FemCare Pharma Ltd and Ambit Corporate Finance was the financial advisorto Dabur India Ltd.
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About Fem Care Pharma
Promoted in 1982, Fem Care Pharma is listed on the Bombay Stock Exchange. The company markets a range of bleach, liquid soaps and hair removing creams under the brand FEM, besides fabric softeners and stain removers under the Bambibrand. The company has its manufacturing facilities in Nashik(Maharashtra) and Baddi(Himachal Pradesh). Its distribution reach covers 1.25 lakh retail outlets and 25, 000 parlours directly.
About Dabur
DaburIndia Limited is one of India’s leading FMCG Companies. Building on alegacy of quality and experience for over 120 years, Dabur is todayIndia’s most trusted name and the world’s largest Ayurvedic and NaturalHealth Care Company. Dabur India's FMCG portfolio today includes fiveflagship brands with distinct brand identities - Daburas the master brand for natural healthcare products, Vatikafor premium personal care, Hajmolafor digestives, Réalfor fruit-based beverages and Anmolfor affordable personal care business.
