Consumer goods firm Marico has acquired part of the personal care business from Reckitt Benckiser India,which the domestic arm of the British major had bought from Paras Pharma last year. Though both the companies refused to disclose financial details of the deal,market estimates are that it could be over $100 million.
Set Wet,Livon,Zatak and certain other personal care brands currently owned by Reckitt Benckiser (RB) will come under the Marico fold. Reckitt,last April,acquired Paras Pharmaceuticals over-the-counter brands including Moov pain relief ointment,Krack heel care lotion,and DCold cold remedy for Rs 3,260 crore along with its personal care (PC) business with brands such as Set Wet and Zatak,and hair lotion brand Livon.
The latest transaction envisages transfer of all key assets including intellectual property rights,supply agreements and third party manufacturing agreements (Paras PC business),for an undisclosed consideration. These assets are in the process of being transferred to a separate company in which Marico will acquire 100 per cent shares. The closing of the transaction is scheduled to take place over the next few months.
The Paras PC business is expected to achieve a turnover of over Rs 150 crore during FY12. Brands in the portfolio are amongst the top three positions in the hair gels,male deodorant and leave-on hair serum categories. This acquisition gives Marico an opportunity to participate in the rapidly growing deodorant and male grooming categories in India.
The portfolio addresses the grooming needs of the youth and is supported by Indias demographic profile. Marico will also leverage its distribution strength in India to provide a fillip to the growth of the brands. The acquisition of this business is expected to further reduce Maricos dependence on edibles oils and hair oils.