FMCG major Godrej Consumer Products (GCPL), makers of Cinthol soaps, on Friday announced their pact with private equity firm Creador to divest its non-core food business in Indonesia for an undisclosed amount. The transaction is expected to close in about two months.
GCPL acquired the business in 2010. Last year, the company's food business in Indonesia generated net sales of about $22 million.
The company's foods business in Indonesia includes, cereals, snacks and instant food products, under the brands Simba and Turbo.
Under the agreement with Creador, Godrej's Indonesian subsidiary will continue to distribute the brands for a two- year period. HSBC acted as an exclusive advisor to Godrej. Adi Godrej, chairman of GCPL said, "Our decision to divest the foods business is very much in line with our strategic intent to focus on home and personal care. The consideration from this divestiture will further strengthen our balancesheet.”