Dabur to acquire Ayurvedic personal care brand Sesa Care

Fast moving consumer goods and personal care business Dabur has initiated its acquisition of Ayurvedic haircare brand Sesa Care to enable Dabur to expand into the mid-priced hair oil market.

“The enterprise value is estimated to be in the range of Rs 315 crore to Rs 325 crore, including debt of Rs 289 crore, which will be backed by the corporate guarantee of Dabur,” announced Dabur in a regulatory filing, the Press Trust of India reported. “The share swap for the equity shares and remaining 49% CRPS in Sesa will be decided at the time of filing the scheme of merger, based on the valuation reports.”
 
The business has initiated the first step to merge Sesa Care into Dabur and will subsequently file the plan with the appropriate authorities over the coming few months. The deal will be subject to statutory and regulatory approval.
 
Dabur has entered into an agreement with Sesa Care’s shareholder True North, a private equity fund. Dabur will acquire the 51% majority stake from True North at a face value of Rs 12 crore, ET Retail reported.
 
“This presents a strategic opportunity for Dabur to expand in the Rs 900 crore Ayurvedic hair oil market- a key whitespace in Dabur’s current hail oil portfolio,” said Dabur. “Dabur’s extensive distribution network, category expertise, and access to key international markets can be leveraged to grow the brand and expand its footprint.”