Dabur India on Thursday announced the acquisition of Balsara Hygeine and Home Care businesses for Rs 143 crore (Rs 1.43 billion) and said it would look at more buyouts to capitalise on the consolidation in the sector.
The company board, which met on Thursday, approved the acquisition of controlling stake in three Balsara group companies -- Balsara Hygiene Products, Balsara Home Products and Besta Cosmectics Ltd, Dabur India CEO Sunil Duggal told a press conference.
"Balsara's acquisition is certainly not the last one and there may be more strategic takeovers in future," he said.
With the acquisition of the Rs 200 crore (Rs 2 billion)Balsara Group in an all cash deal, Dabur India will have oral care brands like Promise, Babool, Meswak; mosquito repllents like Odomos and household products like Odonil and Odopic under its fold.
Dabur India will acquire the entire promoters stake in the three companies -- 99.4 per cent in Balsara Hygiene, 100 per cent in Balsara Home Products and 97.9per cent in Besta Cosmetics.Out of Rs 143 crore, which the company will pay to the promoters of Balsara for buying the three firms, Dabur India is mopping up Rs 120 crore (Rs 1.2 billion) through internal accruals and financing the remaining Rs 23 crore (Rs 230 million) through borrowings.