After acquiring Latin America?s hair dye firm Issue Group, FMCG major Godrej Consumer Products Ltd (GCPL) has picked up a 100% stake in Argencos, an Argentine haircare company. The equity value for both transactions (Issue Group and Argencos) is pegged at Rs 210 crore.
On May 23, Godrej acquired Issue Group, a market leader in the Latin American hair colour market. In fact, GCPL has been on an aggressive acquisition spree since the last month.
After acquiring PT Megasari Makmur Group in Indonesia in April this year, GCPL has also bought out the remaining 51% stake in Godrej Sara Lee Limited (GSLL) a few days ago.
When contacted by FE, Adi Godrej, chairman of the Godrej Group, said: ?The transaction will be financed by offshore debt. The acquisitions of Issue and Argencos are important steps in establishing our footprint in Latin America.?
According to Godrej, the combined sales of the two Argentine transactions would be over $45 million. ?Argencos is a perfect, complementary add-on to our earlier acquisition of Issue Group. We also expect significant synergies across the value chain and a strong thrust for creating a sizeable business in Brazil,? he added.
The hair colour market in Argentina is estimated to be around $200million, growing at a CAGR of more than 22% over the last two years. With a market share of 17% in the format, Argencos is a leading player in the kit format in hair colours.
GCPL will continue to scout for acquisitions in global markets. ?We are looking at acquisitions in domestic markets too,? said Godrej. Analysts say the buyout strategy will have a positive impact on the company?s growth in domestic as well as global markets.