Marico acquires 100% of Vitenam’s personal care firm Beauty X Joint Stock for ₹172 cr


FMCG major Marico on Friday announced that it the compnay’s wholly owned subsidiary, Marico South-East Asia Corporation (MSEA), has entered into a definitive agreement to acquire 100 per cent of Vietnam based Beauty X Corporation for cash consideration 172 crore.

Beauty X owns female personal care brands Purité de Prôvence and Ôliv, which offer a range of hair care and skin care products , such as shower gels, shampoos, conditioners, face wash, lotions, among others.The transaction is expected to be completed by March 31, 2023.

“The transaction is expected to be completed by March 31, 2023subject to requisite regulatory approvals and customary closing conditions,” said Marico in its regulatory filing.

“The addition of Purité de Prôvence and Ôliv presents an opportunity to significantly expand our play in female beauty and personal care category and therefore increase our total addressable market in a high growth country like Vietnam. Both brands have established a distinct natural proposition and scaled up profitably in a rather short span of time. We are buoyant about the medium-term prospects of beauty and personal care category in Vietnam and expect to further stepup growth and profitability through investing in brand building and leveraging various operational synergies with our existing portfolio over the next few years,” said Saugata Gupta, MD and CEO, Marico Limited.

In calendar year(CY) 2021 Beauty X posted sales of 82 crore, while the company posted sales worth 85 crore in CY 2020.

Marico Ltd reported a 3% decline in September quarter profit on rising input costs, adverse currency swings and a higher effective tax rate. Net profit fell to 301 ,crore for the quarter ended September as against 309 crore in the corresponding quarter last fiscal.

The company’s scrip ended 2.64 per cent higher at 524 on BSE.

Catch all the Corporate news and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.



Source link