MUMBAI: FMCG major Dabur India has acquired US based Namaste Laboratories, maker of organic root stimulator, for $100 million in an all-cash deal.
The deal signed through Dabur’s US-based wholly owned subsidiary Dermoviva Skin Essentials is expected to close by the end of 2010.
It will enable Dabur to gain greater foothold in the Asian and African markets.
“This acquisition is in line with our strategy to build a global presence in the international consumer goods market,” said Dabur chairman Anand Burman.
“It will serve as a gateway to the US market for our portfolio of consumer products. This transaction will also enhance our profitability, increase stakeholder value and substantially add to Dabur‘s already strong presence in Africa, serving as one of the key pillars in strengthening our position in the African continent,” Burman added.
The current management team, led by Namaste founder and CEO Gary Gardner, will continue to run the operations of the Namaste business. Namaste will continue to operate in its current facility in Blue Island, with business as usual.
Namaste founder and CEO Gary Gardner said, “In Dabur, Namaste has found a strategic partner that can help accomplish its goal of becoming the hair care brand of choice for people of African descent worldwide. This partnership offers synergy in mission, as both companies focus on healthful, holistic offerings, and in market platforms with Namaste‘s stronghold in the US and Dabur‘s strengths outside North America. We know our employees, customers, distributors and retailers will benefit from this great growth opportunity.”
Houlihan Lokey served as a financial advisor to Namaste.
