Indian FMCG major Emami Ltd on Friday said it has acquired German brand Creme 21 in the personal care space, having major business in the Middle East and other focus markets. The brand, which offers skin care and body care products such as creams and lotions, shower gels, sun care range and men’s range, has been acquired at less than 1.5 times of its sales.
With current sales at over eight million euros and a gross margin of over 50 per cent, the city-headquartered company expects to take this brand on an aggressive growth trajectory.
“The acquisition has a strong business fit as it operates in our focus markets and chosen categories. We plan to leverage our existing network of distribution and infrastructure to grow the brand.
“It has good potential for growth and we expect it to add value to our growth trajectory. With this acquisition, the company would be able to enjoy economies of scale due to additional business base,” said company Director Harsha V. Agarwal.
The company said international acquisition is in line with its strategy for growth through inorganic route.
Over 80 percent of the brand’s business is contributed by MENA (the Middle East and North Africa) region and the balance by Germany and other focused countries. The products are manufactured by a third party in Germany under asset lean model.
“The acquisition is being funded from internal accruals,” it added.