Wipro to acquire Singapore-based FMCG firm; shares gain 2%

Stocks

oi-Sneha

By Sneha B K

Updated: Monday, December 10, 2012, 10:29 [IST]

Shares of the Wipro gained more than 2% after the company said that it it has signed a agreement to acquire 100% shareholding of the L.D. Waxsons Group, a Singaporebased Fast Moving Consumer Goods (FMCG) company for an all cash consideration of about USD 144 million.

The shares of the company was seen trading higher by 1.63% to Rs 385 on BSE at 10.20 am IST. It touched an-intra-day high of Rs 392.

This transaction will give Wipro, the leadership position in the facial skincare market in Malaysia and Singapore, expand its presence in China, besides enhancing its market position in other Asian markets Commenting on the transaction, Mr. Vineet Agrawal, President, Wipro Consumer Care and Lighting, says: "We welcome LD. Waxson group to the Wipro family.We have a great track record of successful acquisitions including Unza and Yardley. We see L.D.Waxson as a good strategic fit. 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."

L.D. Waxson Group, headquartered in Singapore, is a leading company with a wide portfolio of brands, including 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.

Revenues on run-rate basis for FY'12 are about USD 68 million. The transaction is expected to be closed within the next 60 days.

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