HUL to acquire VWash from Glenmark Pharmaceuticals

Hindustan Unilever Limited (HUL) signed an agreement with Glenmark Pharmaceuticals Ltd to acquire its intimate hygiene brand VWash. HUL will be entering into the niche intimate hygiene category with this acquisition.

According to company’s statement, this proposed acquisition is in line with HUL’s plans to enter fast-growing segments of the future in the premium beauty and personal care category.

“The acquisition of VWash gives us an entry into the currently underpenetrated and rapidly growing female intimate hygiene segment. The brand has a leadership position and fits well into the white spaces in our Beauty & Personal Care business. We look forward to completing the acquisition and strongly believe HUL is well positioned to further scale up this business, given the strength of our market development and distribution capabilities,” said Mr Sanjiv Mehta, Chairman & Managing Director of HUL.

The transaction between the companies is expected to be completed in next few months and is subject to fulfilment of certain conditions. Until then Glenmark will manage the business and will also continue to manufacture for HUL for an agreed a period. The consideration has been split into two parts involving an upfront cash payment upon closing of the deal and a deferred consideration over the next three years, said HUL.

Under the deal, only the brand and the business will be bought by HUL. It will not be buying the manufacturing facility or taking over employees as a part of this transaction. The deal consists of acquisition of intellectual property rights including trademarks, design and know-how related to the VWash brand.

“It is a very clear niche consumer need, but with a large potential to grow and with a large potential to lead market development. As India starts to get more affluent and India starts to understand the needs of consumers clearly, intimate hygiene is a category which is poised for growth and expansion,” said Mr Srinivas Phatak, Chief Financial Officer, HUL

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.