Hindustan Foods (HFL) has executed a Share Purchase Agreement (SPA) on January 24, 2022 with Reckitt Benckiser (India) to acquire 100% Equity Share Capital of Reckitt Benckiser Scholl India (RBSIPL). The acquisition of the Shares of RBSIPL is in line with the company's strategy to enter Contract Manufacturing and expansion of its business into OTC Healthcare and Wellness products.
The company has identified RBSIPL as a suitable acquisition target because it is a financially healthy organization and HFL had announced its intention to enter into the Contract Manufacturing in this segment of OTC Health care and wellness. The aggregate cost of acquisition of shares is Rs 73 crore and subject certain completion adjustments in accordance with the terms and conditions set out in the SPA.
HFL specializes in setting up one-stop contract manufacturing solutions and the ability to consistently deliver quality products.
