Homegrown FMCG company Dabur India has acquired 72.15 per cent of Fem Care Pharma (FCPL), a women's skin care products company, for Rs 203.7 crores in an all-cash deal.
The acquisition is in line with Dabur’s strategy to expand its scale of operations and strengthen its presence in the fast moving consumer goods space.
As per the Indian takeover regulations, Dabur will make an open offer for an additional 20 per cent stake in Fem Care. The transaction materialised at a price of Rs 800 per share, which translates into an equity valuation of Rs 282.4 crore and an enterprise valuation of about Rs 300 crore of Fem Care.
The deal will give Dabur an entry into the high-growth skin care market with an established brand ‘Fem’.
“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. Fem's brands fit in well with Dabur's future growth plans, both for India and international markets," said Sunil Duggal, CEO, Dabur India.
Fem Care’s product portfolio, includes fairness bleach, hair remover and liquid soap under the Fem brand. It reported a consolidated net profit of Rs 9.75 crores in the first half of the 2008-09 fiscal on a turnover of Rs 54.45 crores.
"As Dabur gains access to Fem's research capabilities, we believe it will be able to broaden the company's product portfolio and further capitalize on the emerging opportunities in domestic and international markets," said Sunil H Pophale, Chairman & Managing Director, Fem Care Pharma.
KPMG Corporate Finance was the financial advisor to the promoters of Fem Care Pharma and Ambit Corporate Finance was the financial advisor to Dabur India.
