Patanjali Foods to acquire Patanjali Ayurved’s personal care business

Patanjali Foods Limited plans to acquire Baba Ramdev’s personal care and home care business Patanjali Ayurved for Rs 1,100 crore, subject to the necessary approvals, and plans to fund the deal through its internal cash reserves.

Patanjali Foods announced in a regulatory filing that its board has approved the “acquisition of the entire non-food business undertaking ie hair care, skin care, dental care, and home care carried out by PAL, including but not limited to all movable assets, immovable properties, contracts, licenses, books and records, employees, and certain assumed liabilities of PAL through a slump sale arrangement on a going concern basis,” the Press Trust of India reported.
 
The acquisition is still subject to approval by Patanjali’s shareholders and lenders along with other mandatory approvals. The business must also seek approval from the Competition Commission of India.
 
“The consideration for the acquisition shall be Rs 1,100 crore, payable by the company to the seller in tranches,” announced Patanjali Foods. The business intends to pay the acquisition cost over five tranches, ET Bureau reported.
 
The deal is designed to enable Patanjali Foods to become a fast moving consumer goods giant. Patanjali Ayurved Limited is already one of the promoters of Patanjali Foods, which also announced the deal on its Facebook page.