Dabur India to Acquire Ayurvedic Hair Care Brand Sesa Care.

In a strategic move to expand its foothold in the Ayurvedic hair oil segment, Dabur India has announced the acquisition and merger of Sesa Care Private Ltd. As part of the transaction, Dabur will purchase 51 percent of the cumulative redeemable preference shares (CRPS) of Sesa from private equity fund True North for ₹12.5 crore at a face value of ₹10 each.

The acquisition will also include a share swap for the remaining 49 percent of the CRPS, with the final valuation to be determined during the filing of the merger scheme. The deal is expected to close within 15 to 18 months, pending regulatory approvals.

The enterprise value of the transaction is estimated to be between ₹315 crore and ₹325 crore, which includes ₹289 crore in debt that will be backed by a corporate guarantee from Dabur. Sesa Care's turnover for the fiscal year 2024 was reported at ₹133.1 crore.

Dabur India Chairman Mohit Burman emphasized the significance of this merger, stating, “The proposed integration of Sesa will bring a premium brand with strong Ayurvedic credentials, complementing our existing portfolio and enhancing our position in the hair care category. We look forward to the exciting opportunities this deal presents.”

CEO Mohit Malhotra added that the merger aligns with Dabur’s long-term vision to consolidate its portfolio and explore new growth opportunities. By leveraging Sesa’s Ayurvedic hair care products and expertise alongside Dabur’s extensive distribution network, the company aims to elevate the Sesa brand and deliver enhanced value to stakeholders while realizing revenue and cost synergies.

HBL