Cipla Health to acquire distribution, marketing business undertaking of Ivia Beaute’s cosmetics and personal care business
Upstox
2 min read • Updated: April 16, 2024, 1:02 PM
Summary
Cipla said the strategic move is aligned with its focus on enhancing its consumer healthcare and wellness portfolio. The company believes that brands of Ivia complement Cipla Health’s offerings in the skin care segment. The transaction is expected to be completed within 60 days.
Cipla Health, the consumer healthcare subsidiary of Cipla, has signed a business transfer agreement for the purchase of the distribution and marketing business undertaking of cosmetics and personal care business of Ivia Beaute, India including the company’s brands namely Astaberry, Ikin and Bhimsaini on a worldwide basis. Cipla said the strategic move is aligned with its focus on enhancing its consumer healthcare and wellness portfolio.
The turnover of the undertaking stands at ₹55.01 crore during the fiscal year 2023. Cipla said that brands of Ivia complement Cipla Health’s offerings in the skin care segment. The transaction is expected to be completed within 60 days, it said.
Cipla said in an exchange filing that the cost of acquisition stands at ₹130 crore as on the closing date and ₹110 crore contingent upon achievement of certain financial milestones for the next three years.
Shivam Puri, Chief Executive Officer and Whole Time Director of Cipla Health said the acquisition not only solidifies the company’s presence in the expansive and dynamic beauty and personal care sector but also builds on its well-established footprint in tier 2-6 cities. “Our target consumer base is discerning and seeks variety, especially when it comes to new brands in personal care. Integrating Astaberry, Ikin and Bhimsaini into our portfolio seamlessly complements our existing offerings across key over the counter (OTC)/consumer healthcare categories, empowering us to deliver comprehensive solutions that cater effectively to the diverse everyday needs of our consumers,” Puri said.
During the third quarter of fiscal year 2024, Cipla reported a 13.7% year-over-year increase in its operating income at ₹6,604 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 24.2% y-o-y to ₹1,748 crore. Net profit increased 31.8% to ₹1,056 crore during the quarter.
Shares of Cipla have gained over 10% since the beginning of the year. The stock has risen over 52% in the last one year.