Godrej Consumer Products to acquire Argentina's Issue Group
24 May 2010
FMCG major Godrej Consumer Products Limited (GCPL) is acquiring family-owned Argentine company, Issue Group Co, which specialises in hair colouration for an undisclosed sum.
Mumbai-based GCPL, which was in talks to acquire the Latin American company last month (See: Godrej Consumer to acquire Latin American company) finalised the deal yesterday and said that it will acquire a 100-per cent stake in Laboratoria Cuenca, Consell SA, Issue Uruguay and Issue Brazil (colectively, the Issue Group).
Buenos Aires-based Issue Group is a market leader in the development and marketing of cosmetic hair products and develops private label products to major supermarket chains and other companies.
Having over 350 employees and a 10,000 metres manufacturing plant in Argentina, the Issue Group is a market leader in hair colours in Peru, Uruguay and Paraguay in the 25 countries its products are available and has an emerging presence in Brazil.
In Argentina, it is a leader in the hair colour market and dominates the mass segment with a market share in excess of 20 per cent, with revenues of over $33 million in 2009.
Though GCPL has not disclosed the size of the deal, it said that the acquisition is valued at approximately 8 times EBITDA and is expected to be EPS accretive in the first year of operations.