Reckitt sells Dermicool to Emami for Rs 432 crore
- ByStartupStory | March 26, 2022
Emami, the manufacturer of Boroplus, announced on Friday that it has acquired Dermicool, one of the leading brands in the prickly heat and cool talc sector, from FMCG giant Reckitt for a total consideration of Rs 432 crore (excluding taxes and duties). According to the company, the acquisition is funded through internal accruals and is subject to the usual closing conditions.
Emami now hopes to be the market leader in this category after acquiring Dermicool. Over the years, Dermicool has seen a lot of ownership changes. Reckitt (formerly Reckitt Benckiser) bought it for Rs 3,260 crore in 2010 as part of a wider deal that included the purchase of its owner, Paras Pharmaceuticals, as well as other well-known brands like Moov, D’Cold, and Krack. Navratna soon surpassed the brand as the second-largest participant in the market.
Emami has acquired a number of consumer products companies over the years, including Zandu, Kesh King, and the German brand Creme 21. When Reckitt put its major brands — Set Wet, Livon, and Zatak – on the market in 2012, it was one of the top corporations in the competition to buy them. Marico, on the other hand, beat it out.
Emami has always been open to inorganic expansion as part of one of its fundamental business goals.
The company evaluates acquisitions that not only provide value and have synergy with its current line of business but also provide prospects for the company to be present in high-growth categories, according to the company.
Zandu, Kesh King, and the German brand Creme 21 are among the brands or businesses that the corporation has purchased in recent years, according to the statement.
Boroplus, Navratna, Zandu, Fair & Handsome, and Kesh King are among Emami’s top brands. It has a robust domestic distribution network of over 3,500 distributors and 4,000 sub-distributors, with a direct reach of 900,000 retail locations and a total reach of over 45 lakh. Emami also exports to more than 60 different nations.
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