Patanjali Foods announced that it has received an approval from the Competition Commission of India (CCI) for the acquisition of the home and personal care business of Patanjali Ayurved Ltd for Rs 1,100 crore.
In a regulatory filing, the company said, “The Competition Commission of India (CCI) on Tuesday approved the proposed Rs 1,100 crore deal of Patanjali Foods Limited (Company) to acquire the Home and Personal Care (HPC) business of Patanjali Ayurved Limited (PAL).”
The acquisition will help the company’ FMCG product portfolio and will accelerate its transition into a ‘leading FMCG company’. The HPC business comprising dental care, skin care, home care and hair care, it added, has a strong brand equity in India’s FMCG space and enjoys a loyal consumer base across the country. “The acquisition shall strengthen the company’s existing FMCG product portfolio with an array of marquee brands and is expected to contribute positively to growth in revenue and EBITDA,” Patanjali Foods said, while adding that it will bring along with it multiple key synergies in terms of brand equity and enhancements, product innovations, cost optimisation, infrastructure & operational efficiencies and positive impact on market share.
The acquisition was already approved by the shareholders of the company on 4th August, 2024, pursuant to approval of the board of directors of the firm.
The HPC business of Patanjali Ayurved includes all the assets and liabilities attributable to the business, relevant employees, distribution network, contracts, licenses, permits, consents, and approvals integral to this operation. Patanjali Foods and Patanjali Ayurved have also agreed to enter into a licensing agreement permitting the Company to use the trademarks and associated intellectual property rights, owned by PAL, that relate to the product portfolio of the HPC business. “A licensing arrangement for a 3 per cent turnover based fee along with other conditions has been agreed between the Company and PAL,” it said.
This is the company’s fourth acquisition in the last 3 years.
From: financialexpress
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