Dabur India concludes acquisition of 51% stake in Badshah Masala

The FMCG major said that it has completed its acquisition of a 51% stake in a majority stake in the country's top spice brand Badshah Masala.

Founded in 1958, Badshah Masala is engaged in the business of manufacturing, marketing and export of ground spices, blended spices and seasonings. It has 52 products available in India and overseas markets. Blended spices form 82% of the revenue. It has 2 manufacturing facilities located in Umargam, Gujarat.

On 27 October 2022, Dabur India had announced the signing of definitive transaction agreements to acquire 51% shareholding of Badshah Masala.

The company had said that it is acquiring 51% stake in Badshah for Rs 587.52 crore, less proportionate debt as on the closing date, with the Badshah enterprise being valued at Rs 1,152 crore. This translates to a revenue multiple of around 4.5x and EBIDTA multiple of around 19.6x of FY2022-23 estimated financials.

This acquisition is in line with Dabur's strategic intent to expand its Foods business to Rs 500 crore in 3 years and expand into new adjacent categories. This also marks Dabur's entry into the over Rs 25,000 crore branded spices and seasoning market in India.

Dabur India said it will acquire the balance 49% of the issued and paid-up equity share capital of Badshah after a period of 5 years.

In an exchange filing made post trading hours yesterday, the FMCG giant Dabur India said that pursuant to share purchase agreement (SPA) and shareholders agreement (SHA) executed by the company with the existing promoters and shareholders of Badshah, Dabur has acquired 51% equity shareholding of Badshah from its shareholders upon fulfillment of terms and conditions as per SPA and SNA and the said transaction has been completed on 2 January 2023.

"Consequent to the above transaction, Badshah Masala Private Limited has become a subsidiary of Dabur India, the company said in a statement.

Dabur India is one of India's leading FMCG companies. It is one of the world's largest ayurvedic and natural health care company.

The FMCG major's consolidated net profit declined 2.83% to Rs 490.06 crore on 6% increase in net sales to Rs 2986.49 crore in Q2 September 2022 over Q2 September 2021.

The scrip was up 0.04% to currently trade at Rs 562 on the BSE.

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