FMCG company Emami Limited announced the acquisition of German personal care brand, Creme 21. The brand is now available in west Asia and other markets.
In a regulatory filing, Emami said the brand had been acquired at less than 1.5 times of its sales. This acquisition is in line with its strategy for growth through inorganic route.
The brand was acquired by Ms. Antje J Willems Stickel in 2003. More than 80% of the brand’s business is contributed by MENA ((Middle East and North Africa) region and the balance by Germany and other countries. The products are manufactured by a third party in Germany under asset-lean model, according to a statement. a press release said. With current sales of more than €8 million and gross margin of over 50%, Emami expects to take this brand on an aggressive growth trajectory. The acquisition is being funded from internal accruals.
Harsha V. Agarwal, director, Emami Limited, said, “ ...Creme 21 has a strong business fit as it operates in Emami’s focus markets and chosen categories… With this acquisition, the company will be able to enjoy economies of scale due to additional business base.”
Antje Willems Stickel, promoter of Creme 21, added “..with Emami’s strength in Middle East and other global markets, we are confident that Emami would add lot of value to Creme 21.”