Consumer products maker Dabur India Ltd will acquire the personal care, hair care and creams businesses of the South Africa-based CTL group of companies.
The deal valued at US$1,5m (Rs 10 crore) will mark Dabur's entry into the South African personal care market, as per a stock market disclosure by the company.
Dabur South Africa (PTY), a wholly owned subsidiary of Dabur International, has entered into an agreement to acquire the South African business of development, manufacturing, packaging and sale of personal care products of CTL Contracting Proprietary Ltd, it said in the BSE filing.
In addition, Dabur South Africa (PTY) would acquire certain equipment of Carbotec Laboratories Proprietary Ltd and immovable property of CTL Management and Personnel Services Proprietary Ltd, it said.
The company’s first takeover deal in the continent took place in July this year when it had bought South African cosmetics manufacturing and trading firm Discaria.
In July 2010, Dabur had made its first foreign acquisition by buying Hobi Kozmetik Group, a personal care products company in Turkey, for US$69m. In the same year, it clinched its biggest deal so far by acquiring Namaste Laboratories in the US for US$100m.
Dabur CFO Lalit Malik had told VCCircle earlier that the company would prefer a string of pearls strategy for its overseas acquisitions.
Dabur's rival Godrej Consumer Products Ltd has also made several acquisitions in recent years. Godrej Consumer has struck three acquisitions this year to boost its African operations.
Emami and Future Consumer Enterprise Ltd are among the other FMCG companies that have signed M&A deals in the past year. Consumer goods firm Marico is also gearing up to revive its M&A play, as hinted by Pankaj Saluja, chief of strategy, M&A and new business for the company.