Marico to acquire Paras personal care business from Reckitt Benckiser

Marico Ltd. | Consumer Food | FMCG | BSE: 531642 | NSE: MARICO

15 Feb 2012 Evaluate

Marico, one of India’s leading Consumer Products & Services Groups in the Beauty and Wellness space, has executed documents to acquire Set Wet, Livon, Zatak and certain other personal care brands currently owned by Reckitt Benckiser (RB). RB had acquired these brands from Paras Pharmaceuticals in a deal completed during April2011.

The transaction envisages transfer of all key assets including intellectual property rights, supply agreements and third party manufacturing agreements (Paras personal care business), for an undisclosed consideration. These assets are in the process of being transferred to a separate company in which Marico will acquire 100% shares. The closing of the transaction is scheduled to take place over the next few months.

The Paras personal care business is expected to achieve a turnover of over Rs 150 crore during FY12. Brands in the portfolio are amongst the top three positions in the hair gels, male deodorant and leave-on hair serum categories. This acquisition gives Marico an opportunity to participate in the rapidly growing deodorant and male grooming categories in India. The portfolio addresses the grooming needs of the youth and is supported by India’s demographic profile. Marico will also leverage its distribution strength in India to provide a fillip to the growth of the brands. The acquisition of this business is expected to further reduce Marico’s dependence on edibles oils and hair oils.