Godrej Consumer Products rose 2.41% to Rs 1,421.95 at 11:50 IST on BSE after the company said it has entered into an agreement to acquire entire stake in Strength of Nature LLC, a leading company of hair care products for women of African descent.
The announcement was made on Saturday, 2 April 2016.Meanwhile, the S&P BSE Sensex was up 17.20 points or 0.07% at 25,290.49.
On BSE, so far 4,594 shares were traded in the counter as against average daily volume of 22,044 shares in the past one quarter. The stock hit a high of Rs 1,433 and a low of Rs 1,391 so far during the day. The stock had hit a record high of Rs 1,456.65 on 3 August 2015. The stock had hit a 52-week low of Rs 1,024 on 4 May 2015. The stock had outperformed the market over the past one month till 1 April 2016, rising 11.39% compared with Sensex's 6.27% rise. The scrip had also outperformed the market in past one quarter, gaining 3.45% as against Sensex's 3.41% fall.
The large-cap company has equity capital of Rs 34.05 crore. Face value per share is Re 1.
Godrej Consumer Products (GCPL) announced that the acquisition is a further step to accelerate GCPL's global 3 by 3 strategy-a presence in emerging markets in Asia, Africa and Latin America through 3 core categories - hair care, home care and personal care and scale up its presence in Africa by being at the forefront of serving the hair care needs of women of African descent. The acquisition is expected to be earning per share (EPS) accretive for GCPL from year one itself. The consideration is payable in cash. Strength of Nature (SON), a USA based company with a significant presence in Africa and the Caribbean, is one of the fastest growing companies in the hair care category for women of African descent. SON has a compelling portfolio of heritage, category-leading brands in wet hair care, across relaxers, maintenance, styling and shampoos. This includes iconic hair care brands with affordable and innovative products, which have been serving women of African descent across 50 countries. Among them, are African Pride, TCB, Just for Me, Motions and Profectiv MegaGrowth.
SON recorded an annualised calendar year 2015 revenues of $95 million. SON complements GCPL's portfolio in Africa, building on its leadership position in dry hair care and hair colours in the region. The acquisition also enables GCPL to turbo-charge, creating a strong platform for wet hair care products in Africa and to forge a stronger presence in the $1.8 billion global wet hair care category. The acquisition is expected to be completed by mid or end of April 2016.
Godrej Consumer Products' consolidated net profit rose 22.5% to Rs 322.95 crore on 5.7% rise in net sales to Rs 2353.54 crore in Q3 December 2015 over Q3 December 2014.
Godrej Consumer Products is the largest home-grown home and personal care company in India.
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