Emami to complete Rs 1,000 crore acquisition
The company is to invest further if any good targets come its way
August 17, 2011 | comments ( 0 ) |
Emami will complete a 1,000-crore acquisition in three months. This was stated by the Chairman of the company, R S Aggarwal.
"We are aggressively pursuing multiple targets and will try to keep the deal below 1,000 crore. However, if there is good target, we are ready to invest further," said Agarwal.
The makers of Boroplus, Navratna Oil and Zandu Balm, Emami is in final stages of negotiations with a couple of target firms in India and abroad, including the personal care business of Paras Healthcare, which Reckitt Benckiser bought last year and now plans to sell off.
Emami had last year lost out to Reckitt Benckiser in the race to buy Paras' personal care business that includes brands such as Livon, Borosoft, SetWet, DermiCool, Moov, Krack foot and ItchGuard. Agarwal said Emami had last year offered 3,400 crore for acquiring Paras and the Kolkata-based company can raise more money if required.
"We already have that much cash reserve. Emami is debt free and hence we have that option to raise cash. And if required, the promoters can even off-load 4-5% equity to raise money," said Agarwal. Emami also plans to enter the premium personal and healthcare segment with a new brand over the next one year. The new brand will offer products in personal care and healthcare segments.
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