Personal care products maker Honasa Consumer Pvt Ltd (HCPL) on Monday announced to acquire BBLUNT, a premium hair care, hair colour and styling products brand, into a Rs 138-crore deal, which includes buying out of 30 per cent share of Godrej Consumer Products Limited (GCPL) into the company.
Besides, in the Rs 138-crore deal, HCPL has also acquired BBLUNT salons operated by Bhabani Blunt Hair Dressing Pvt Ltd, according to a joint statement from the parent company of D2C brand Mamaearth, The Derma Co and Aqualogica.
Confirming the development, Godrej group FMCG arm GCPL in a regulatory filing said it has “divested its entire stake, including the incremental equity stake arising out of the conversion of convertible debentures, in Bhabani Blunt Hair Dressing Private Limited and the right to use the ‘BBLUNT’ brand name to manufacture and sell BBLUNT branded products” to HCPL.
The total consideration proposed to be received by GCPL on the closing of the transaction is Rs 84.5 crore, including Rs 25.7 crore from the divestment of stake in Bhabani Blunt Hair Dressing and Rs 58.8 crore from selling ‘BBLUNT’ brand name, said GCPL.
The rest Rs 53.5 crore is to buy promoters stakes and the saloon business.
Founded by Adhuna and Ashoke Bhabani, BBLUNT, over the past two decades, has built a unique reputation in the world of hairstyling.
Its product portfolio currently consists of hair colours, shampoos, dry shampoos, conditioners, styling products, serums and temporary hair colours.
“As part of the acquisition, BBLUNT hair care and styling products business will be completely owned and managed by HCPL.
“However, BBLUNT salon business will continue to operate as an independent entity, with the founding team Adhuna Bhabani, Osh Bhabani and Avan Contractor as creative directors and Spoorthy Shetty as CEO,” it said.
The said the acquisition will help BBLUNT expand its business through the expertise from HCPL, which had established into direct-to-consumer (D2C) segment.
“…HCPL can help strengthen BBLUNT’s and use their D2C and e-commerce strength to scale up the business,” it said.
HCPL co-founder and CEO Varun Alagh said, “BBLUNT, as a brand, has been ahead of its time with its innovative product portfolio and its digital presence. The brand has carved a niche for itself and considering the market size of Rs 6,000 crore in hair colour and hairstyling, the brand has the potential to grow exponentially.”
He said added that being a house of brands, HCPL has attained expertise in building millennial brands with a digital-first approach. “We will utilise our expertise and proficiency in digital marketing to accelerate the growth and scale of BBLUNT.”
JM Financial acted as the exclusive financial advisor to Honasa Consumer.
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