KV Asia Capital, a private equity firm focused on investments in Southeast Asia, has acquired 100 per cent stake in Derma-Rx International Aesthetics Pte Ltd (DIAL) from Kaya Ltd, a wholly owned subsidiary of Marico Kaya Enterprises Ltd (MaKE). DIAL together with its subsidiaries in Singapore and Malaysia, providers aesthetic skin care solutions.
Milind Sarwate, Group CFO, MaKE said, “Kaya had acquired DIAL in 2010. Over the last three years the two companies had added significant value to each other’s business. Kaya has now decided to focus its efforts in the Kaya Skin Clinic business where it has established scale. The company will use the proceeds of the divestment in building the Kaya business”.
Singapore-based Tardis Capital Pvt Ltd acted as investment bankers to Kaya on this transaction.
The agreement envisages financial closing subject to DIAL satisfying certain conditions, including transfer of Kaya’s Middle East business to another wholly owned subsidiary of Kaya Ltd. The all-cash transaction is expected to be closed between the two parties in the coming weeks.
Marico Kaya Enterprises Ltd delivers skin care solutions in India and overseas, through Kaya Skin Clinics (86 in India and 18 in the Middle East).
The parent company Marico Ltd generated consolidated revenues of Rs 4,596 crore for the year ended March 31, 2013. It houses brands such as Parachute, Saffola, Hair & Care, Nihar, Mediker, Revive, Set Wet, Zatak, Livon, Kaya and Derma Rx. This straddles categories such as hair oil, deodorant, edible oil, fabric care and male grooming besides the Kaya skin care business.
While the firm was largely known for its Parachute hair oil brand in the 90s, it has diversified through a string of acquisitions and the flagship brand now contributes less than a third of total sales.
Marico recently restructured its businesses into two entities through a vertical demerger bringing the beauty and wellness business under a separate listed firm, Marico Kaya Enterprises Ltd (MaKE) and housing its fast-moving consumer goods (FMCG) under a separate unit.
In a recent similar deal, private equity firm Creador acquired the Indonesian branded food business of Godrej Consumer Products Ltd. The PE firm bought PT Simba Indosnack Makmur (Simba), which was acquired by Godrej Consumer as part of its $270 million deal to acquire the Megasari Group in 2010. Creador, which has recently closed its maiden fund of $135 million, primarily focuses on growth capital transactions in India, Indonesia and Malaysia.
(Edited by Joby Puthuparampil Johnson)