Dabur India has announced plans to acquire and merge with Sesa Care Private Ltd, aiming to strengthen its position in the Ayurvedic hair oil market. The company will purchase 51% of the cumulative redeemable preference shares (CRPS) of Sesa from the private equity fund True North for ₹12.5 crore, valuing each share at ₹10.
In a regulatory filing, Dabur stated that the share swap for the equity shares and the remaining 49% of the total paid-up CRPS will be determined when the merger scheme is filed, based on an upcoming valuation report. The deal is expected to conclude within 15 to 18 months, pending regulatory approvals.
Dabur has estimated the enterprise value of Sesa Care to be between ₹315 crore and ₹325 crore, which includes a debt of ₹289 crore, supported by Dabur’s corporate guarantee. Sesa Care reported a turnover of ₹133.1 crore in FY24.
Mohit Burman, Chairman of Dabur India, emphasized that this merger aligns with the company’s goal to consolidate its portfolio and explore new growth avenues. He noted that Sesa is a premium brand known for its strong Ayurvedic credentials, which will enhance Dabur’s existing product offerings in hair care.
Dabur India’s CEO, Mohit Malhotra, added that integrating Sesa’s Ayurvedic products with Dabur’s extensive distribution network and category expertise will help grow the Sesa brand and create additional value for stakeholders, alongside revenue and cost synergies.
In 2023, Dabur completed the acquisition of a 51% stake in Badshah Masala.
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