Emami in talks to buy Kesh King

Kolkata-based FMCG major, Emami has entered into final negotiations to buy Kesh King brand of SBS Biotech.
Emami in talks to buy Kesh King
Kolkata-based FMCG major, Emami has entered into final negotiations to buy Kesh King brand of SBS Biotech. Deal talks are hovering around a deal size of Rs 1,800 cr and the companies target to sign on the dotted line by May-end if talks succeed, a source said.
Sources indicate that Bajaj Corp which was also in the fray has recently walked out of the deal as Emami emerged as the preferred suitor for Kesh King which has hair oil, shampoo and ayurvedic capsules in its portfolio. Emami is already present in the hair care business and has been scouting around to expand its brands, an industry expert said.
It will be a large transaction for Emami if the deal goes through, but, the company has shown interest in many large deals in the past showing its appetite to expand inorganically. It will need to raise funds for the buyout and equity fund raising cannot be ruled out, a source indicated.
Kesh King is owned by Himachal Pradesh-based SBS Biotech and has revenues of over Rs 400 crores. Emami posted a Net Sales of Rs 2217.25 cr and PAT of Rs 485.61 cr in FY15. When contacted, Emami's spokesperson said, "we do not comment on market speculations."
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