The New Delhi-based firm will gain control of Namasté’s Hair Rejuvenation & Revitalization Nigeria Limited, Healing Hair Laboratories International, and Urban Laboratories International, along with its South African arm, as part of the deal.
Gateway to US and Africa markets
“This acquisition is in line with our strategy to build a global presence in the international FMCG market,” said Dabur’s chairman Dr. Anand Burman.
“The Namasté Group has a complementary product mix that can be easily integrated with Dabur and will also serve as a gateway to the US market for our portfolio of consumer products.”
The transaction, which is set to be approved in the US by the end of the year, will help to enhance Dabur’s profitability, stakeholder value and strengthen its current position in the African market, according to the company.
“We expect this transaction to provide a tremendous platform for value creation in both the US and Africa. With this acquisition, nearly 25 percent of Dabur's consolidated revenue would be generated overseas,” commented P. D. Narang, group director at Dabur.
A ‘big’ year for acquisitions
The deal can be added to the growing list of mergers and acquisitions Dabur has made in the personal care and pharmaceutical markets this year.
Earlier this year, it acquired Turkish manufacturer Hobi Kozmetik for $69m having just announced its merger with Mumbai-based Fem Care Pharma.
Dabur’s CEO Sunil Duggal believes the acquisition of these two companies, along with hygiene and home products company Balsara, stand Dabur in good stead to manage and integrate the latest takeover effectively.
“We are confident that the opportunities for capitalizing on the strengths of Namasté’s business across our international operations are significant,” he said.
Specialist and natural
Its latest addition, Namasté was founded in 1996 originally to fulfill the needs of the health-conscious consumers of African descent with a range of products developed with natural ingredients.
The company controls a 12 percent market share in the US and enjoys significant market positions in many countries in Africa, the Middle East, Europe and the Caribbean region of North America.
Founder and CEO of Namasté, Gary Gardner, will continue to run the business, along with the current management team, as a wholly-owned subsidiary of Dermoviva Skin Essentials, a subsidiary of Dabur India.
"The entire Namasté management team is excited to be joining forces with Dabur," said Gardner.
"In Dabur, we have found a strategic partner who will help realize our vision of becoming the hair care brand of choice for people of colour worldwide. With their presence in Africa, and with our knowledge of the consumer of African descent, we look forward to building a global presence rooted firmly on the African continent.”
Namasté’s North American sales team will also remain in place, and its existing relationships with retailers, wholesalers, distributors and suppliers will not change as a result of this transaction.