Mumbai-based FMCG firm Godrej Consumer Products Ltd (GCPL) has entered into an agreement with the African hair care company Darling Group Holdings to hike its stake in its two entities in South Africa and Mozambique to 90 per cent, as per a stock market disclosure. The company did not disclose the deal amount.
The acquisition is in line with its intent of gradually scaling up its ownership of the Darling businesses.
Last year in March, GCPL had acquired 4.63 per cent each in the South Africa and Mozambique entities. Post this, the FMCG firm held 55.6 per cent stake in both units.
In June 2011, GCPL had entered into an agreement to acquire 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 in September 2011.
The Indian firm held the right to acquire 100 per cent in the operations across countries by 2016. It had recently moved to acquire the balance stake in some markets namely Nigeria and Ghana.
Darling Group sells hair extension products under the brands Darling and Amigos.
GCPL has been acquiring firms in the hair care business, a segment where it has products spread across the hair colour, hair dye, mehendi and hair oil. Majority of its acquisitions in the business have been overseas, including a bunch of them located in Africa and a few in Latin America.
Recently, it signed a deal with South Africa-based Frika Hair (Pty) Ltd to acquire its hair extension business.
GCPL's Africa business has annualised revenue of $200 million.
Shares of GCPL were trading at Rs 1,134 each, up 1.35 per cent on BSE in a strong Mumbai market on Wednesday at 12.50 PM.
(Edited by Joby Puthuparampil Johnson)