Emami buys German brand Creme 21
Buyout value at 1.5 times sales of Euro 8m
- Published 26.01.19, 1:35 AM
- Updated 26.01.19, 1:35 AM
- a min read
Emami has acquired German personal care brand Crème 21 in a bid to strengthen its presence in West Asia, north African countries, Saarc and Russian markets.
Crème 21 has sales of over 8 million euros (over Rs 64.5 crore) and Emami said the brand was acquired at less than 1.5 times of its sales. The acquisition is being funded from internal accruals.
The company in a separate communication to bourses said Emami International FZE, Dubai, a wholly owned subsidiary of Emami Limited, had acquired the shares of Fentus 113 GmbH, which was incorporated on January 3, 2019. The acquisition, at a cost of 27,800 euros, is for business purposes, the filing said.
Crème 21 offers skin care and body care products such as creams, lotions, shower gels, sun care range, men’s range. With a gross margin of over 50 per cent, Emami feels it can take this brand on an aggressive growth trajectory. Over 80 per cent of the brand’s business are contributed by the MENA region and the balance by Germany and other focussed countries. The products are made by a third party in Germany.
Emami exports to over 60 countries and has subsidiaries in the UAE, Bangladesh, Sri Lanka, Egypt and Australia. The international acquisition is in line with its strategy of inorganic growth.