Homegrown fast moving consumer goods (FMCG) company Emami Ltd has acquired Crème 21, a German personal care brand at an investment of nearly ₹100 crore. The brand has major business in MENA (Middle East and North African ragion) and Germany.
Crème 21, which has current sale of over Euro 8 million (approximately ₹64.6 crore at present exchange rate) and gross margin of over 50 per cent, has been acquired at less than 1.5 times of its sales, said a press statement issued by Emami. The acquisition will be funded through internal accruals.
The brand offers skin care and body care products such as creams and lotions, shower gels, sun care range and men’s range among others. The acquisition is expected to boost and complement Emami’s international business and portfolio particularly in MENA, SAARC and Russian markets.
Creme 21, a German brand, was acquired by Ms Antje J Willems Stickel in 2003. Over 80 per cent of the brand’s business is contributed by MENA 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 release said.
Emami has a portfolio comprising of more than 300 products. Some of its leading brands include Navratna, Boroplus, Zandu, Fair and Handsome and Kesh King. The company has a strong domestic distribution network of more than 3,500 distributors and 4,000 sub-distributors, with a direct reach across 725,000 retail outlets.
The company also exports to over 60 countries and has a strong presence in Russia, CIS, GCC, SAARC and African countries. It has subsidiaries in UAE, Bangladesh, Srilanka, Egypt and Australia.
In February 2018, Emami invested in Brillare Science Ltd, which owns premium hair and skin care products for use in professional salons. It had also acquired 30 per cent stake in Helios Lifestyle Ltd, which owns the premium male grooming brand ‘The Man Company’ in December 2017.