Dabur India announced on Wednesday, October 29 that it will buy a majority stake in Sesa Care Private Limited for INR 12.59 crore. This acquisition of the ayurvedic hair care company is expected to boost Dabur’s presence in the hair care market and complement its existing products, the company stated in an exchange filing.
Dabur to buy 51% stake of Sesa
According to Economic Times, as part of this deal, Dabur will acquire 51% of Sesa’s shares from True North (a private equity fund) for Rs 12.59 crore at face value. The estimated value is between Rs 315 crore and Rs 325 crore, which includes a debt of Rs 299 crore, backed by Dabur’s corporate guarantee, the company said in a press release. The acquisition is expected to be completed in 15-18 months, subject to terms and conditions.
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Meanwhile, Sesa, a well-known brand in Ayurvedic hair care, had a turnover of Rs 133.3 crore in the fiscal year ending 2024. It operates in India and Bangladesh. After the merger, Sesa Bangladesh will be fully owned by Dabur, the company stated.
Merger with Sesa to introduce brand in Ayurveda- Chairman, Dabur
“Dabur is a market leader in the hair oil category. The merger with Sesa will introduce a premium brand that has robust credentials in Ayurveda, complementing our existing portfolio and enhancing our presence in the hair care market. We look forward to the exciting opportunities this deal presents,” stated Mohit Burman, Chairman, Dabur India Limited to ET.
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Furthermore, Abhinav Dhat, Dabur India’s Executive Director and Group Head of Corporate Strategy added, “Sesa allows us to fill a strategic gap, and we will actively seek additional targets in both traditional and modern sectors.”
Additionally, the share exchange for equity shares and the remaining CRPS in Sesa will be set during the merger filing, based on valuation reports.
“With this proposed merger, our goal is to create a stronger, more resilient business that will provide even greater opportunities for growth in the future,” commented Sandeep Rai, CEO of Sesa Care Private Limited.
