Dabur India Ltd bought 72% stake of Fem Care Pharma for Rs 203 crore in an all-cash deal. This acquisition deal got approval from board of directors on Friday.
Dabur made this deal to enter skin-care market in India. As required under takeover regulations, Dabur will make an open offer for an additional 20% stake in Fem Care.
Sunil Duggal, chief executive officer, Dabur India said: “We will fund the entire acquisition from internal accruals. We have around Rs 250 crore of cash.”
According to sources, Dabur has not bought Fem Care's speciality Chemical unit as it doesn't fit into its portfolio and constitutes only 3% of Fem's sales. Sources also reveal that a joint venture in US called Fem Mitechell in which Fem has 25% stake is also being retained by the Fem's promoters as it was not adding much value to Dabur.
Anand Burman, Chairman of Dabur India said acquisition of Fem Care Pharma is in line with the company strategy to aggressively expand its scale of operations and strengthen its presence in FMCG space. This transaction would give Dabur an entry into high-growth skin care market with an established brand name Fem. Further, Dabur also has the potential to extend the brand into newer and related skin care categories.
