Dabur India buys stake in Fem Care Pharma

New Delhi: Dabur India has acquired a 72.15 per cent stake in Fem Care Pharma (FCPL), a women’s skin care products company, for Rs 203.7 crore, in an all-cash deal.

The company said it would make an open offer for an additional 20 per cent shares as required under the takeover regulations.

The board of directors of Dabur India Ltd approved the acquisition at a board meeting held in Mumbai on Friday. The transaction materialised at a price per share of Rs 800, which translates into an equity valuation of Rs 282.4 crore and an enterprise valuation of approximately Rs 300 crore of FCPL.

“The acquisition of Fem Care Pharma is in line with our strategy to aggressively expand Dabur’s scale of operations and strengthen its presence in the FMCG space. This transaction would give Dabur an entry into the high-growth skin care market with an established brand name ‘FEM’. Further, Dabur also has the potential to extend the brand into newer and related skin care categories,” said Dr Anand Burman, Chairman, Dabur India Ltd.

Fem Care Pharma Ltd has a leadership position in the fairness bleach category and a strong market position in hair removal and liquid soap category. The other brands in its portfolio include Oxybleach cream, Botanica anti-ageing cream, Stratum colour protecting hair conditioners, SAKA men’s bleach and Bambi fabric softeners.

The company has its manufacturing facilities in Nashik (Maharashtra) and Baddi (Himachal Pradesh). Its distribution reach covers 1.25 lakh retail outlets and 25,000 parlours directly. FCPL, which reported a consolidated net profit of Rs 9.75 crore in the first half of the 2008-09 on a turnover of Rs 54.45 crore, also has a sizeable international market presence in markets such as Yemen, Maldives, Mauritius, Malaysia, UAE and Oman.