Reliance Retail and Naturals Salon cease acquisition talks

Salon store chain Naturals Salon and Spa and retail giant Reliance Retail have ceased talks over the latter acquiring the former due to factors including differences in business valuation. Naturals Salon and Spa plans to continue to expand and reach international markets. 

“It was mutually agreed to withdraw from the transaction due to potential synergy mismatches and other preferences,” Naturals Salon and Spa’s chief executive CK Kumaravel told the Economic Times. “Naturals is presently well poised with plans of expansion into multiple verticals and extended businesses. The salon is going global and the company will plan to tap the capital markets for its growth plans at an appropriate time.” 
 
Reliance Retail and Naturals Salon’s parent company Groom India Salons and Spa had discussed Reliance acquiring a 49% share of the business, ET Bureau reported. The aim of the deal was to brung Reliance into the salon market and give Naturals funds to swiftly expand. 

The business currently counts 700 outlets in India and plans to tap into growing non-metro demand for beauty services by opening in Tier 2 and 3 cities, aiming to continue to expand its brick-and-mortar presence to reach a total of 3,000 salon stores by the year 2025. Naturals Salon and Spa launched in the early 2000s and focuses on premium beauty care.