Dabur acquires South African firm for Rs 25 crore

Dabur has bought South African hair care brand Long and Lasting by acquiring both its manufacturer and distributor, the company said in a filing on the Bombay Stock Exchange late on Wednesday.

Dabur South Africa, a wholly owned subsidiary of Dabur International, has entered into a share purchase agreement to acquire personal care products firms D&A Cosmetics Proprietary and Atlanta Body & Health Products on or before June 1, 2018, the company said in the filing.

While the company did not disclose the deal size, two officials directly aware of the development said it is estimated at Rs 25 crore.

Dabur chief executive Sunil Duggal said Dabur was in active talks for more potential acquisitions both locally and in international markets.

“The market is opening now to M&As (mergers and acquisitions) after a two-year slump. We are talking to a few brands for buyouts and negotiations are currently on, on valuations,” he told ET soon after the deal closure for Long and Lasting.

“The African hair care market is a high-potential one and the brand we have acquired gives us captive business in the mass premium hair care segment,” Duggal said.

D&A Cosmetics is the manufacturer of Long and Lasting, while Atlanta Body & Health Products is the distributor. Both companies sell mid-priced personal and hair care products under this brand across African markets.

In November last year Dabur had bought out personal and hair care business of another South African firm CTL Group of Companies for $1.5 million, or about Rs 10 crore, to enter the fast-growing personal care market in that country.

Indian consumer goods firms including Dabur, Godrej Consumer Products and Marico have been pushing international acquisitions, especially in emerging markets such as Africa and Southeast Asia, to fuel growth at a time when the domestic market is slowing down.

Dabur’s first international acquisition was Turkish cosmetic and personal care firm Hobi Kozmetik in the year 2010, followed by US company Namaste Laboratories in the same year.