Godrej Consumer Products (GCPL) has entered into an agreement for the acquisition of the South African hair-colour business of Rapidol, UK, as well as its subsidiary Rapidol international, for an undisclosed sum.
The all-cash deal is subject to regulatory approvals. The two units have a combined turnover of 52 million South African Rand, (about Rs 33 crore) in 2005.
Mr Adi Godrej, Chairman and Managing Director of GCPL, said, "This transaction is consistent with our endeavour to build a strong personal and household care business both in India and across the globe, especially in hair-colours. Rapidol South Africa is a profit making company that manufactures and markets premium hair-colourants in the African market.
"The acquisition of the Inecto and Soflene brands will widen our portfolio of hair colourant and hair care offerings and give us access to the large and growing African market. We also propose to introduce some of our own products there, via Rapidols established distribution network, " He indicated that further growth would be driven through organic and inorganic opportunities in India and overseas.
The deal also provides GCPL an opportunity to acquire the Inecto and Sofelene trademarks that would allow the company larger territorial rights over the brand equities. Further, it will also provide a springboard for the introduction of GCPLs products in South Africa and other African countries. Rapidol South Africa owns Inecto, an internationally known brand, popular with consumers across South Africa and the African Continent.
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| Posted : 7/5/2006 |
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