Dabur India has decided to acquire and merge Sesa Care Private Ltd as part of its strategic play to consolidate in the Ayurvedic hair oil market. As per this deal, Dabur will acquire 51% of the cumulative redeemable preference shares (CRPS) of Sesa from private equity firm True North for 12.5 crore, with each share carrying a face value of 10.

“Share swap for the equity shares and remaining 49 per cent of the total paid up CRPS of the Target Company, to be decided at the time of filing scheme of merger basis the valuation report to be obtained”, it said in a regulatory filing. It expects the deal to completed in 15-18 months subject to regulatory approvals.

“The enterprise value is estimated to be in the range of 315-325 crore, including debt of 289 crore, which will be backed by the corporate Guarantee of Dabur”, the FMCG major said. Sesa Private Ltd’s turnover in FY24 stood at 133.1 crore.

“Dabur is a market leader in the hair oil’s category. The proposed merger of sesa witt bring to Dabur a premium brand with strong credentiats around Ayurveda that will complement our.existing portfotio and strengthen our presence in the hair care category. we look forward to the exciting opportunities this deat brings”, Dabur India Chairman Mohit Burman said.

“This merger atigns with our long-term vision to consolidate our portfolio and tap into newer growth opportunities’ By integrating sesa’s range of Ayurvedic hair care products and expertise with Dabur’s extensive distribution network, category expertise, and access to key internationat markets, we aim to grow brand sesa and deliver enhanced vatue to our stakeholders in addition to revenue and cost synergies”, Dabur lndia CEO Mohit Mathotra added.

In 2023, Dabur completed acquistion of 51 per cent stake in Badshah Masala.