FMCG major Marico Ltd on Wednesday said it has entered into the Rs 170 crore ($38 million ) haircare market in Egypt through the brand Fiancee, hitherto owned by Egypt-based Ready Group.
The deal, for an undisclosed consideration, envisages acquisition of the brand by Marico and direct investment in Egypt, the company informed the Bombay Stock Exchange.
The acquisition would give Marico access to the manufacturing and sales infrastructure of Fiancee, nurtured by the Ready Group for over 15 years and would provide a fillip to Marico's international operations.
"This footprint in Egypt will help us widen our strides in the International haircare market," Ready Group Chairman Sayed El Ready said.
"Marico, with its expertise in the haircare segment, would make a big success of the Fiancee brand," Marico Group Chairman Harsh Mariwala said.
The consideration for the deal would be paid out over the next six months in two tranches.
Marico, using a short-term loan facility, has paid out on loan and would now take a fresh look at its financing pattern by modulating the debt and equity mix suitably.
The Fiancee range includes hair creams and gels and commands a share of about 20 per cent of the Egyptian ƒ215 million haircare market.
Ernst & Young India advised Marico on this transaction. The Ready Group was advised by HC Securities & Investment, Cairo, Egypt.
The shares of the company closed at Rs 519.65, up 1.30 per cent at the BSE.