Godrej to acquire hair-colouring business of Rapidol
New Delhi, July 4: Godrej Consumer Products Ltd today said it will acquire the South African hair color business of UK-based Rapidol.
The company would also acquire its subsidiary Rapidol International, with a combined turnover of 5.2 crore South African Rand in the last fiscal.
The company proposes to make the acquisition through a 100 per cent cash deal, subject to certain regulatory approvals.
''This transaction is consistent with our endeavor to build a strong personal and household care business both in India and across the globe, especially in hair colours. The acquisition of the INECTO and SOFLENE brands will widen our portfolio of hair colourant and hair care offerings and give us access to the large and growing African market,'' Godrej Chairman&Managing Director Adi Godrej said.
The acquisition gives the company entry into the large ethnic hair color markets and would augment its top line and bottom line, which in turn will enhance stakeholder value.
It also provides the company an opportunity to acquire the INECTO and SOFELENE trademarks that would allow them much larger territorial rights over the brand equities and the combined entity will be in a position to create value at a faster pace.
INECTO is distributed across Angola, Zambia, Mozambique, Tanzania, the Democratic Republic of Congo, Swaziland, Ghana, Gabon, Botswana, Namibia, Lesotho, Zimbabwe, Mauritius, Seychelles and Madagascar mainly through the cash and carry route.
In addition, the company proposes to introduce some of its products including hair colors, FairGlow and Evita in the African market.
Rapidol South Africa is a profit making company that manufactures and markets premium hair colourants in the African market.