On Friday, Marico stated that it would be acquiring Beauty X Corporation from Vietnam. The all-cash deal is worth 493 Billion Vietnamese Dong (around Rs 172 crore). This corporation owns female personal care brands such as ‘Purit de Provence’ and ‘liv’.
After the move, the FMCG company will be able to expand in Vietnam.
Its subsidiary, Marico South-East Asia Corporation (MSEA), has entered into a definitive agreement to acquire 100% of Beauty X Corporation. This company focuses on beauty and personal care products such as shower gels, shampoos, conditioners, face wash and lotions.
In a statement, the company said-
“The transaction will expand Marico’s presence in the female personal care segment in Vietnam, with an offering of a range of premium and differentiated hair care and skin care products, while also realising various operational synergies.”
The estimated completion date for the transaction is March 31, 2023 and is subject to customary closing conditions such as regulatory approvals, Marico stated. Rs 82 crore was Beauty X’s turnover in 2021.
In a relatively short amount of time, Marico CEO Saugata Gupta said both Natural Brands have achieved distinguishable success and profitably scaled. He also added-
“We are buoyant about the medium-term prospects of the beauty and personal care category in Vietnam and expect to further step up growth and profitability through investing in brand building and leveraging various operational synergies with our existing portfolio over the next few years.”
In FY22, Marico had a total revenue of USD 1.3 billion from product sales in India and other countries in Asia and Africa.
With the acquisition of Beauty X Corporation, Marico hopes to be able to further expand its presence in Vietnam.
This move by Marico is sure to help the company gain a foothold in the Vietnamese market. It will be interesting to see how this acquisition impacts Marico’s financial performance in the coming months. Stay tuned for more updates!
Shivendra Tiwari is an Engineer and an MBA in Marketing. He is the Content head at Marketing91 and a thorough Online Marketing enthusiast. Shivendra loves to follow different brands and study their Business and Marketing tactics.