Emami Ltd announces acquisition of Creme 21

Emami Ltd announces acquisition of Creme 21

Agency News

Kolkata, Jan 25: Emami Limited, one of the leading personal and healthcare FMCG companies in India, has announced acquisition of a leading personal care brand, Creme 21 of Germany having major business in Middle-East and other focus markets.
The brand has been acquired at less than 1.5 times of its sales, a company release said. This international acquisition is in line with the company’s strategy for growth through inorganic route. Creme 21 offers skin care and body care products such as creams and lotions, shower gels, sun care range and men’s range.

Creme 21 was acquired by Ms Antje J Willems Stickel in 2003. Over 80 per cent of the brand’s business was contributed by MENA region and the balance by Germany and other focused countries. The products are manufactured by a third party in Germany under asset lean model. With current sale at over Euro 8 million and gross margin of over 50 per cent, 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, “The acquisition of Creme 21 has a strong business fit as it operates in Emami’s focus markets and chosen categories. We plan to leverage our existing network of distribution and infrastructure to grow the brand. The brand has good potential for growth and we expect it to add value to our growth trajectory. With this acquisition, the Company would be able to enjoy economies of scale due to additional business base.”

Commenting on the deal, Ms Antje Willems Stickel, promoter of Creme 21 added, “We are excited about this deal and with Emami’s strength in Middle East and other global markets, we are confident that Emami would add lot of value to Creme 21 and take it to the next level”. (UNI)