Making its first ever overseas acquisition, FMCG player Dabur today said it has acquired Turkish personal care firm Hobi Kozmetik Group for $69 million (about Rs 324 crore) as part of its strategy to strengthen its presence in the Middle East and North Africa.
"This acquisition is an important step towards further consolidating and expanding our already substantial presence in the Middle East and North Africa region," Dabur India Chairman Anand Burman said in a statement.
At present, Dabur sells its products in over sixty countries through its subsidiary Dabur International.
The company said it has fully acquired three Hobi Group firms-- Hobi Kozmetik, Zeki Plastik and Ra Pazarlama through its overseas subsidiary Dabur International for $69 million. The transaction is expected to be completed by the third quarter of this fiscal.
"The acquisition offers Dabur an entry into an attractive new market like Turkey, and adds to our portfolio a host of popular international brands that enjoy pole position in their respective categories", Dabur India CEO Sunil Duggal said.
Set up in 1974, Hobi Kozmetik is a maker of personal care products in Turkey and sells a range of hair care and skin care products under 'Hobby' and 'New Era' brands across 35 countries, including the Middle East and North Africa.
"Hobi’s brands complement Dabur’s portfolio, categories, offering us a strong platform to enter newer product categories and markets", Duggal added.
This is Dabur's first major acquisition after it took control of Mumbai-based Fem Care Pharma (FCPL), a leading player in the women's skin care products market, for Rs 203.7 crore for 72.15 per cent stake in an all-cash deal in 2008. Later the company acquired additional 20 per cent through an open offer for Rs 54 crore.
Dabur India scrips were trading at Rs 206.2 per share, down 2.55 per cent from the previous close in the afternoon trade at the Bombay Stock Exchange.
