Temasek-backed home grown FMCG firm Godrej Consumer Products Ltd (GCPL) is acquiring the remaining 49 per cent stake in African hair care company Darling Group Holdings’ business in Nigeria for an undisclosed amount, the company disclosed on Tuesday.
“This move is in line with GCPL's intent of gradually getting to full control of the Darling country businesses,” the company said in the statement.
GCPL had struck an agreement to buy 51 per cent stake in Darling Group Holdings, which operates in 14 countries across sub-Saharan Africa. This was to be completed in three stages geographically with the first phase executed by September 2011.
The Indian firm held the right to acquire 100 per cent in the operations across countries by 2016. It has now moved to acquire the balance stake in one of the markets namely Nigeria.
Darling Group sells hair extension products under the brands Darling and Amigos.
GCPL has been consistently acquiring firms in the hair care business, a segment where it has products spread across the hair colour, hair dye, mehendi and hair oil products. In October last year, GCPL also forayed into the hair salon segment with a deal to acquire 30 per cent stake in Mumbai-based premium hair salon chain B:blunt for an undisclosed amount.
This was the company’s ninth acquisition in hair care since 2005, according to VCCEdge, the financial research platform of VCCircle.
Majority of its acquisitions in the business have been overseas, including a bunch of them located in Africa and a few in Latin America.
These include deals for Cosmetica Nacional (Chile), Argencos (Argentina), Issue Group (Argentina), Kinky, Darling and Rapidol (Africa) besides UK-based Keyline and Swastik Shikakai owner Naturesse Consumer Care (India).
Besides hair care products, GCPL is into household and other personal care products. Its brands include Good Knight, Cinthol, Godrej No. 1, Hit, Fairglow, Ezee and Protekt.
(Edited by Joby Puthuparampil Johnson)