MUMBAI: Marico South Africa Pty. Limited (MSA), a wholly owned step-down subsidiary of Marico Limited, has announced the acquisition of business including related intellectual property rights of Isoplus, a leading hair styling brand in South Africa from JM Products SA Pty. Limited (JM Products) and Mary L Harris, its owner, for a consideration of 75 million South African Rand (around Rs 360 million) at a revenue multiple of 1.2. This strategic buyout will enable MSA to become a full spectrum ethnic hair care company in South Africa.

The acquisition comprises purchase of manufacturing facilities, working capital and all intellectual property rights owned by JM Products and Ms. Mary L Harris. The acquisition is expected to be fully consummated by mid-Q3 FY18.

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. With a value market share of 27%, Isoplus is the leader in the styling segment, with oil sheens and styling gels being the main contributors to the brand’s top line. In 2016, J M Products clocked a sales turnover of 62 million South African Rand (circa Rs 300 million).

Marico is currently present in South Africa through brands like Caivil, Black Chic, Just for Kids, Hercules and Medi-Pac and is amongst the key players in the aftercare maintenance, chemical treatments and hair colour segments. This acquisition of the styling business of JM Products makes Marico’s portfolio in ethnic hair care complete.

Commenting on the acquisition, Saugata Gupta, MD and CEO, Marico Limited, 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.”

John Mason, Managing Director and Business Head, MSA commented, “I am excited with this acquisition. 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.”