Hindustan Unilever Limited(HUL) on Monday said it has signed an agreement with Glenmark Pharmaceuticals Ltd to acquire its intimate hygiene brand VWash.
The deal includes acquisition of intellectual property rights including trademarks, design and know-how related to the VWash brand but not manufacturing units. The brand, launched in 2013 controls half the the female intimate hygiene category and grew 48% in FY 2018-19.
“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 and 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,” Sanjiv Mehta, Chairman and Managing Director of HUL said.
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 the company.
Both parties would be working together to complete the transaction in the next few months. Glenmark will continue to manage the business until the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time. Glenmark will receive an upfront payment and royalty on sales for three years.
Over the years, Glenmark launched multiple line extensions including VWash Wipes to expand the brand offering across different consumer needs. “The decision to divest VWash brand is driven by the strategy to focus on our core therapy areas. While Glenmark has been able to establish VWash as a category leader, we are confident that HUL’s strong market presence and large distribution network will accelerate future growth of VWash,” said Sujesh Vasudevan, President India Formulations, Middle East and Africa at Glenmark.
Source: Economic Times