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Business: Fast-moving consumer goods and personal care business Dabur has launched its acquisition of Ayurvedic haircare brand Sesa Care to enable Dabur to expand into the mid-priced hair oil market.
This includes debt of Rs 289 crore to be guaranteed by the corporate guarantee of Dabur, and the enterprise value is estimated to be in the range of Rs 315-325 crore, said Dabur in its regulatory filing, the Press Trust of India reported. The equity shares and balance of 49% CRPS in Sesa will decide on the share swap at the time of filing the scheme of the merger based on valuation reports.
The company has initiated the first step to merge Sesa Care into Dabur, and over the coming few months, it will subsequently file the plan with relevant authorities. The deal would be subject to statutory and regulatory approval.
Dabur has agreed to a deal with Sesa Care’s shareholder True North, a private equity fund. The face value of Rs 12 crore would be used for acquiring the 51% majority stake from True North, as ET Retail reported.
This will present a strategic opportunity for Dabur to scale up in the Rs 900 crore Ayurvedic hair oil market- an important whitespace in Dabur’s current hail oil portfolio said Dabur. Dabur’s extensive distribution network, category expertise, and access to key international markets can be leveraged to grow the brand and expand its footprint.
