FMCG major Emami is reportedly in final stage of negotiations with SBS Biotech to buy Kesh King brand. The talks are hovering around a deal size of Rs 1,800 crore and the companies are targeting to sign on the dotted line by May-end if talks succeed.
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.
Kesh King is owned by Himachal Pradesh-based SBS Biotech and has revenues of over Rs 400 crores. Emami reported a rise of 14.89% in its net profit at Rs 132.34 crore for the quarter ended March 31, 2015 as compared to Rs 115.19 crore for the same quarter in the previous year.
