Emami Acquires ‘Creme 21’ of Germany
The brand has been acquired at less than 1.5 times of its sales. This international acquisition is in line with the company’s strategy for growth through the inorganic route.
Emami Limited, one of the leading Personal and Healthcare FMCG companies in India has announced the acquisition of a leading Personal Care brand, Creme 21 of Germany having major business in Middle-East and other focus markets. The brand has been acquired at less than 1.5 times of its sales. This international acquisition is in line with the company’s strategy for growth through the inorganic route. Creme 21 offers skin care and body care products such as creams and lotions, shower gels, sun care range, men’s range, etc.
Creme 21, a German brand, was acquired by Ms Antje J Willems Stickel in 2003. Over 80 percent of the brand’s business is contributed by MENA region and the balance by Germany and other focused countries. The products are manufactured by a third party in Germany under asset lean model. With current sale at over Euro 8 million and gross margin of over 50 percent, Emami expects to take this brand on an aggressive growth trajectory. The acquisition is being funded from internal accruals.
Harsha V Agarwal, Director, Emami Limited said that the acquisition of Creme 21 has a strong business fit as it operates in Emami’s focus markets and chosen categories. The company plans to leverage our existing network of distribution and infrastructure to grow the brand. Creme 21 is an iconic German brand that has a high brand recall. The brand has good potential for growth and they expect it to add value to their growth trajectory. With this acquisition, the company would be able to enjoy economies of scale due to additional business base, he said.
Antje Willems Stickel, promoter of Creme 21 said that they are excited about this deal and with Emami’s strength in the Middle East and other global markets, they are confident that Emami would add a lot of value to Creme 21 and take it to the next level, she said.