Godrej Consumer Products Ltd (GCPL) is trading higher by 3% at Rs 742 after the company said Keyline Brands Limited, its subsidiary in the United Kingdom, has acquired the Soft & Gentle brand from Colgate-Palmolive.
“Soft & Gentle is the UK’s 4th largest female deodorant brand (by market share) and retains strong brand equity with retailers and consumers in the UK. The brand offers a truly ‘feminine’ position in the market on an innovative fragrance platform,” GCPL said in a statement.
Invoiced sales for the brand in calendar year 2011 were £21 million (approx Rs 188 crore), it added.
Commenting on the acquisition, Mr. Adi Godrej, Chairman, GCPL said “The acquisition of Soft & Gentle by Keyline Brands will add profitable scale to our UK business. Over the last few years, Keyline Brands has delivered good performance and grown in double digits in a very tough market environment that is witnessing little to no growth.”
GCPL said the acquisition is being funded by low cost debt and the impact on company’s consolidated debt/equity ratio is 0.03.
The stock opened at Rs 728 and has seen a combined around 1,351 shares changing hands on the counter in opening deals.
