Wipro on Saturday announced the acquisition of LD Waxson Group, a Singapore-based FMCG company, for $144 million in an all-cash deal, expanding the non-IT business portfolio of the soap-to-software conglomerate.
The transaction, which is expected to close in the next 60 days, will give Wipro Consumer Care and Lighting (WCCL) a leading position in the facial skincare market in Malyasia and Singapore, besides expanding its presence in China. The revenue of LD Waxson on a run-rate basis for FY12 is around $68 million, according to a release.
LD Waxson Group, founded in 1985 by Dr Tor Lam Huat, has its operations in Singapore, Malaysia, Thailand, Hong Kong and China. Its market reach also extends to more than 15 countries and regions, including US, Europe, Japan, Middle East and South East Asia. In Singapore alone, the company has a distribution reach across 800 retail outlets.
Commenting on the transaction, WCCL president Vineet Agrawal said, “We welcome LD Waxson Group to the Wipro family. We have a great track record of successful acquisitions, including Unza and Yardley. We see LD Waxson as a good strategic fit. This transaction helps us consolidate our successful facial skincare business in Malaysia to a dominant leadership position, and moves us to market leadership in Singapore as well.”
LD Waxson operates in different segments like skincare, bodycare, haircare, kids, and has certain well known brands such as Bio-essence, Ginvera and Ebene.
Dr Tor Lam Huat , chairman of LD Waxson Group, said, “We are happy to join Wipro, a company that shares our passion in developing brands, driven by consumer insight and innovative marketing and have seen their success in this region.”
He further said, “We are confident that with Wipro’s marketing expertise and extensive distribution network, together we will be able to take Bio-essence, Ginvera and other brands to new heights.”
WCCL has made numerous acquisitions, with the largest being of Unza Holdings in July 2007 for $246 million. Besides, it bought brands like Glucovita, Chandrika, Yardley and North West Switches.
Wipro Consumer Care, at the end of second quarter of FY13 fiscal, reported revenues of R1,008 crore recording a year-on-year growth of 26%. Wipro has already announced the demerger between its IT and non-IT business, which is expected to become operational from FY14.