With this deal, Emami aims to enhance its brand growth through its existing network
Emami Group, an Indian conglomerate company recently announced the acquisition of Creme 21, a German skincare products company for an undisclosed amount. According to Emami, Creme 21, which has major business in the Middle East and other focus markets, has been acquired at less than 1.5 times of its sales.
Emami informed, “This international acquisition is in line with the company’s strategy for growth through the inorganic route.” Moreover, the acquisition is being funded from internal accruals, it said.
Harsha V Agarwal, Director, Emami stated, “We plan to leverage our existing network of distribution and infrastructure to grow the brand. Creme 21 is an iconic German brand that has a high brand recall. The brand has good potential for growth and we expect it to add value to our growth trajectory.”
Creme 21 was launched in 1970 for people over 21 years of age, which offers skin care and body care products, like creams, lotions, shower gels, sun care range, and men’s range. “With current sale at over 8 million euro and a gross margin of over 50 per cent, Emami expects to take this brand on an aggressive growth trajectory,” Emami stated.
Commenting on the deal, Antje J WillemsStickel, who acquired the German brand in 2003, said, “We are excited about this deal and with Emami’s strength in Middle-East and other global markets, we are confident that Emami would add lot of value to Creme 21 and take it to the next level.”
Reportedly, over 80 percent of Creme 21’s business is contributed by the MENA region (Middle East and North Africa) and the rest comes from Germany and other focused countries. Besides, its products are manufactured by a German third party under an asset lean model.
Emami, who exports to over 60 countries worldwide and has subsidiaries in the UAE, Bangladesh, Sri Lanka, Egypt, and Australia, intends to enhance its global presence. Moreover, this international acquisition is in line with its strategy of inorganic growth.
