Dabur buys 72% in Fem Care for Rs 204 cr
Dabur has acquired 72.15 per cent of Fem Care Pharma Ltd, which will help it enter the high-growth skin-care market for women, reports HT Correspondent.business Updated: Nov 21, 2008 23:35 IST
Dabur has acquired 72.15 per cent of Fem Care Pharma Ltd, which will help it enter the high-growth skin-care market for women. It paid a consideration of Rs 203.7 crore all in cash for the same. The deal ascribed a price per share of Rs 800, translating into an equity valuation of Rs 282.4 crore and an enterprise valuation of approximately Rs 300 crore of Fem Care Pharma Ltd.
FemCare has two manufacturing facilities, one each at Nashik (Maharashtra) and Baddi (Himachal Pradesh). The company markets products such as bleach, liquid soaps and hair-removing creams under the brandname FEM.
Dabur expects the move to augur well for its domestic as well as international markets. “The acquisition brings to Dabur a portfolio of well-known household brands that enjoy a pole position in their respective categories, offering us a strong platform to enter newer product categories and markets”, said Sunil Duggal, CEO, Dabur India Ltd.
Anand Shah, FMCG analyst with Angel Broking said, “Dabur will now be able to have a stronger hold in the skin-care market with FEM’s strong brands. The market is at a nascent stage.”
Dabur will make an open offer for an additional 20 per cent shares in the company as required under the takeover regulations.