Wipro buys Yardley personal care businesses for $45.5 million

Wipro Ltd. | IT - Software | IT & ITES | BSE: 507685 | NSE: WIPRO

06 Nov 2009 Evaluate

Wipro, India's No. 3 software services exporter, has agreed to buy personal care businesses of Yardley for about $45.5 million, adding to its consumer goods business. Wipro has signed an agreement with UK-based Lornamead group, which owns the Yardley brand, for the businesses in Asia, the Middle East, Australasia and some African markets. The transaction is expected to be completed by mid-December.

Lornamead's global turnover is estimated to be close to $650 million. Its portfolio straddles various categories of personal care products including hair-care (Brisk, Aqua Net and Vosene), cosmetics and skin-care (Amplex and Handsan), oral care (Brilliant and Goldspot) and home care brand Stergene.

This is Wipro's second big buy-out in the FMCG space in two years. In July 2007, Wipro had acquired Singapore-based personal care products manufacturer Unza Holdings Ltd for $246 million (Rs 1,010.2 crore) in an all-cash deal. That deal with Unza's portfolio of shampoos, creams, lotions and detergents had marked Wipro's big plunge into the global FMCG space.

Wipro's flagship brand in India, Santoor, is among the country's top four soap brands, the other's being Hindustan Unilever's Lifebuoy and Lux, and Reckitt Benckiser's Dettol. According to market researcher AC Nielsen's value numbers for soaps, for the 12-month period from June 2008 to June 2009, Santoor was the No. 3 soap brand in the country with a 7.6% market share. Santoor's niche as a sandalwood-based soap has helped it stave off competition.

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