Marico buys S African hair styling brand Isoplus

TNN

Mumbai: Breaking a six-year lull in overseas acquisitions, Parachute-maker

Marico

on Friday acquired

Isoplus

, a leading hair styling brand in

South Africa

for 75 million South African Rand (Rs 36 crore). Isoplus, which is the market leader in South Africa’s ethnic hair styling segment with a share of 27%, is expected to strengthen Marico’s portfolio to make it a complete ethnic hair care player. The company said the strategic buyout will enable Marico South Africa to become a full spectrum ethnic hair care company in South Africa.

The acquisition was made by Marico’s wholly owned step-down subsidiary, Marico South Africa, which bought Isoplus from JM Products and Mary L Harris, its owner, at a revenue multiple of 1.2. Saugata Gupta, MD and CEO of the Rs 5,900-crore Marico, said, “This bolt-on acquisition plugs a critical gap in Marico’s portfolio in the ethnic hair care space in South Africa. Isoplus has a strong consumer franchise and I am confident that the team will leverage its strengths and expertise to further grow the business.”

In 2006-07, Marico set foot in Africa with the acquisition of Fiancee and Hair Code in Egypt. Marico entered the ethnic hair care and healthcare market in South Africa in the year 2007-08 with the acquisition of the consumer division of Enaleni Pharmaceuticals (hair care brands like ‘Caivil’ and ‘Black Chic’ and the healthcare brand ‘Hercules’).

In 2010, it acquired over-the-counter healthcare brand, Ingwe, which had a strategic fit with Marico South Africa’s portfolio and complemented the Hercules range. In the same year, the company began its South East Asia journey with the acquisition of Code 10 male grooming in Malaysia and Derma Rx skin care solutions in Singapore. In 2011, Marico bought an 85% stake in the maker of Vietnam’s top male-grooming brand X-Men.

John Mason, managing director and business head, Marico South Africa, said, “The strength of the brand Isoplus coupled with years of sales and marketing expertise developed within will enable us to grow both, the category and our presence in the category in the long run.” Founded in 1995, JM Products is one of the largest African-American owned companies that manufactures hair care products in South Africa. The business operates in styling products, the second fastest growing segment within ethnic hair care. In 2016, JM Products clocked a sales turnover of 62 million South African Rand (around Rs 30 crore).

The acquisition is expected to be completed by the middle of the third quarter of fiscal year 2018.