FMCG major Dabur will acquire Sesa Care, engaged in the Ayurvedic personal care segment, as a move to expand in the ayurvedic hair oil market.
The value of the acquisition is Rs 315-325 crore, and will help Dabur to tap into newer growth segments and opportunities. For this, the company has entered into an agreement to acquire the majority 51 percent stake from its shareholder True North, a private equity fund for Rs 12 crore at face value. For the remaining 49 percent shares in Sesa, there will be a share swap for the equity shares.
Moreover, the proposed merger brings "substantial revenue and cost synergies" and further, its extensive distribution network, category expertise, and international markets access can be leveraged to grow the brand and expand its footprint.