BANGALORE: Consumer care division of Wipro, which is in the process of being de-merged from India’s third largest software services exporter, has reached a definitive agreement to acquire Sigapore’s LD Waxsons Group, a fast moving consumer goods company, for $144million (Rs 786 crore).
The Singapore company is expected to have an annual revenue of about $68 million. According to the company, the acquisition will give Wipro a leadership position in the facial skincare market in Malaysia and Singapore, as well as help the Indian company expand in China.
Last month, Wipro carved out its non-IT businesses, which contribute 14% to its $7.3 billion revenues and 6% of its operating profits, into a private company called Wipro Enterprises. Besides giving the IT business a sharper focus, the de-merger was also meant to help Azim Premji to reduce his ownership in the company to 75% to comply with Indian laws that require the public to own at least 25% in a listed company.
L.D. Waxson Group, has leading skin care brands Bio-essence and Ginvera, and health care brand Ebene. The company has manufacturing facilities in China and Malaysia and a strong footprint in Singapore, Malaysia , China, Taiwan, Hong Kong and Thailand.
“This transaction helps us consolidate our successful facial skincare business in Malaysia to a dominant leadership position, and moves us to market leadership in Singapore as well,” said Vineet Agrawal, president, Wipro Consumer Care and Lighting. “We have a great track record of successful acquisitions including Unza and Yardley.”