Dabur India Limited (NSEI:DABUR) on October 30, 2024 announced it is acquiring 51% in Rajkot-based Ayurvedic haircare maker Sesa Care Pvt. Ltd, at an enterprise value estimated at INR 3.15 billion - INR 3.25 billion, including a debt of INR 2.89 billion, which it said will be backed by its corporate guarantee. Two years back, Dabur acquired spices maker Badshah Masala for INR 5.875 billion.

Dabur India will merge Sesa Care with itself, and pay INR 0.126 billion to private equity fund True North Managers LLP and the haircare company?s existing owner for acquiring 51% of the total paid up cumulative redeemable preference shares (CRPS) of Sesa Care, according to the deal contours. ?The proposed merger brings substantial revenue and cost synergies. Dabur?s extensive distribution network, category expertise, and access to key international markets can be leveraged to grow the brand and expand its fo- otprint,?

Dabur, which makes haircare brands Amla and Vatika, besides Real juices and Fem bleach, said in an exchange filing. The company said it expects the merger to be completed in 15 to 18 months, subject to approvals. The acquisition will help Dabur bolster its presence in the INR 9.00 billion Ayurvedic haircare market, where it competes with Parachute from Marico, Brahmi Amla and Almond drops from Bajaj, Hindustan Unilever?s Indulekha and Kesh King from Emami.

True North holds a majority stake in Ban Labs, which makes Sesa hair oil. Sesa?s wholly-owned subsidiary in Bangladesh, Sesa Care Bangladesh, will become a wholly-owned subsidiary of Dabur post the merger.