New Delhi: Baba Ramdev-led Patanjali Ayurved has decided to sell its personal and home care business to listed group company Patanjali Foods Ltd for Rs 1,100 crore.
The acquisition will help edible oils company Patanjali Foods become a consumer goods company.
In a regulatory filing, Patanjali Foods informed that the board approved the "acquisition of the entire non-food business venture i.e. hair care, skin care, dental care and home care by Patanjali Ayurved, including, among others, all movable assets". , real estate, contracts, licenses, books and records, employees and certain liabilities assumed by PAL through a distressed sale agreement on a going concern basis.”
This is subject to shareholder, lender and other necessary approvals.
The deal will accelerate the company's transition into a leading consumer goods company, Patanjali Foods said.
Patanjali Ayurved's home and personal care business currently has strong brand equity in the Indian consumer goods space and enjoys a loyal consumer base, the filing said.
Currently, it serves four key segments: dental care, skin care, home care and hair care.
Patanjali Foods and Patanjali Ayurved have also agreed to enter into a licensing agreement that allows the company to use the trademarks and associated intellectual property rights owned by the latter.
"The transfer of the personal and home care business has been mutually negotiated between the company and Patanjali Ayurved (basic valuation exercises carried out by independent valuers) for a lump sum of only Rs 1,100 crore."
The acquisition will lead to consolidation of the consumer goods product portfolio of the 'Patanjali' brand.
"The acquisition will bring with it multiple key synergies in terms of brand value and enhancements, product innovations, cost optimization, infrastructure and operational efficiency and positive impact on market share," Patanjali Foods said.
Pursuant to the board's approval, Patanjali Foods will now take necessary steps to execute the definitive agreements in connection with the acquisition as well as seek the necessary approvals comprehensive for the transaction.
The acquisition will help edible oils company Patanjali Foods become a consumer goods company.
In a regulatory filing, Patanjali Foods informed that the board approved the "acquisition of the entire non-food business venture i.e. hair care, skin care, dental care and home care by Patanjali Ayurved, including, among others, all movable assets". , real estate, contracts, licenses, books and records, employees and certain liabilities assumed by PAL through a distressed sale agreement on a going concern basis.”
This is subject to shareholder, lender and other necessary approvals.
The deal will accelerate the company's transition into a leading consumer goods company, Patanjali Foods said.
Patanjali Ayurved's home and personal care business currently has strong brand equity in the Indian consumer goods space and enjoys a loyal consumer base, the filing said.
Currently, it serves four key segments: dental care, skin care, home care and hair care.
Patanjali Foods and Patanjali Ayurved have also agreed to enter into a licensing agreement that allows the company to use the trademarks and associated intellectual property rights owned by the latter.
"The transfer of the personal and home care business has been mutually negotiated between the company and Patanjali Ayurved (basic valuation exercises carried out by independent valuers) for a lump sum of only Rs 1,100 crore."
The acquisition will lead to consolidation of the consumer goods product portfolio of the 'Patanjali' brand.
"The acquisition will bring with it multiple key synergies in terms of brand value and enhancements, product innovations, cost optimization, infrastructure and operational efficiency and positive impact on market share," Patanjali Foods said.
Pursuant to the board's approval, Patanjali Foods will now take necessary steps to execute the definitive agreements in connection with the acquisition as well as seek the necessary approvals comprehensive for the transaction.
