Fast-moving consumer goods maker Emami Ltd said on Friday it has acquired German personal care brand Creme 21 GmbH as part of its inorganic growth strategy.
The acquisition will boost the company’s international business, particularly in West Asia, South Asia and Russia, Emami said in a stock-exchange filing.
Emami said the value of the deal is less than 1.5 times the annual sales of Creme 21. The German brand had annual revenue of around 8 million euro. This means the deal value is around 12 million euro, or about Rs 97 crore. An Emami executive, who didn’t wish to be named, separately told VCCircle that the deal value is around this level.
The Indian company is funding the acquisition from internal accruals.
“The acquisition of Creme 21 has a strong business fit as it operates in Emami’s focus markets and chosen categories,” said Harsha V Agarwal, director at Emami. “With this acquisition, the company would be able to enjoy economies of scale due to additional business base.”
Creme 21 offers skin and body-care products including creams, lotions and shower gels. Its products are manufactured by a third party in Germany.
The Middle East and North Africa region accounts for more than 80% of the brand’s sales. Germany and other countries contribute the rest.
Creme 21 was launched in 1970 as a personal care brand for people over 21 years of age. The worldwide trademark rights of Creme 21 were acquired by Antje J Willems Stickel from chemicals and consumer goods firm Henkel in 2003.
Emami makes personal care, healthcare and beauty products. Its brands include Zandu pain balm, BoroPlus antiseptic cream and Navratna hair oil. It also operates in the male grooming segment through its brands Fair and Handsome, and HE.
The company has bought minority stakes in a number of companies in recent years. Last year, for instance, it agreed to pick up a 26% stake in professional beauty care products manufacturer Brillare Science Pvt. Ltd.
In June 2018, it bought a 7.54% stake in US-based beauty care products firm Loli Beauty Inc. In December 2017, the company forayed into the male grooming segment by picking up a 30% stake in Helios Lifestyle Pvt. Ltd, which owns the male grooming brand The Man Company.