Marico Ltd., a consumer products company, announced Friday that its wholly owned subsidiary, Marico South East Asia Corporation, will acquire a 100 percent stake in Vietnamese beauty and personal care company Beauty X for $21 million in cash consideration.
Founded in Ho Chi Minh City, Beauty X is known for its personal care brands Purite de Provence and Oliv, and has a range of high quality and differentiated hair care and skin care products.
In local currency, the transaction is worth 493 billion Vietnamese Dong. The deal is expected to close on March 31, 2023, subject to regulatory approvals and customary closing conditions.
The transaction will help Marico to expand its presence in the feminine beauty and personal care segment in a fast-growing country like Vietnam, and to realize several operational synergies.
Upon completion of the transaction, Beauty X will become the subsidiary of Marico South East Asia Corporation, as well as that of its parent company.
In the past three calendar years, Beauty X had sales of US$7.3 million, US$10.3 million and US$9.9 million, respectively.
The acquisition comes just one day after Hindustan Unilever announced a foray into the health and wellness segment through two strategic investments in OZiva and Wellbeing Nutrition.
Marico’s shares ended 2.64 percent higher at $3.7.