Marico acquires Egyptian haircare brand Fiancée

RELATED NEWS Marico Industries on a growth spree! Hold Marico with target of Rs 515: Networth Marico looking to acquire new FMCG companies ALSO READ See latest News about Marico See previous management interviews See what other Experts & Brokerages are saying about Marico Marico BSE | NSE 29/05/12 Are Mutual Funds betting on Marico?

Commenting on its latest acquisition, Mr Vijay Subramaniam, CEO, International Business, said, 'Egypt is a growing economy with a population of about 77 million. This coupled with the buoyant haircare market represents a significant opportunity. With Fiancée under our belt, we could target a turnover of Rs 50 crore-55 crore from Egypt during the next fiscal.'

Mr Milind Sarwate, Chief Financial Officer, Marico Group, said: 'This acquisition, our fifth in 18 months, would accelerate our shareholder value enhancement efforts. Also, the diversity which Fiancée brings to our portfolio, would help us moderate the share of our flagships in both turnover and profits.'

Payments

The consideration for the deal will be paid over the next 6 months in two tranches, based on the brand's performance. Marico, using a short-term loan facility, has already paid one. The FMCG company would take a fresh look at its financing pattern and would modulate the debt and equity mix suitably. The shareholders of Marico Ltd have already approved a financing plan that envisaged funds up to Rs 500 crore being raised by way of debt and / or equity. The company has clarified that there is, as yet, no formal proposal before the board.

Ernst & Young India advised Marico on this transaction. The Ready Group was advised by HC Securities & Investment, Cairo, Egypt. Marico's scrip price closed at Rs 518.30 and was up by 1.03 per cent compared to yesterday's closing price of Rs 513.

Taken from Business Line

thehindubusinessline.in