Thursday, May 13, 2010

Godrej acquired stakes in Sara Lee

Almost after one year, India’s leading FMCG manufacturer, Godrej Consumer Products Ltd., finalized its acquisition deal with Sara Lee. Godrej would acquire 51% stake in Godrej Sara Lee joint venture for Rs. 10.65 billion.

Sara Lee Corporation is one of the top US-based consumer goods manufacturers with operations in more than 40 countries. It sells its products in more than 180 countries around the world.

The Godrej-Sara Lee joint venture is fifteen years old. It owns brands like mosquito repellent Good Knight and Hit, air freshner Ambi Pur and Kiwi shoe polish.

In a statement, GCPL chairman, Adi Godrej said, "This acquisition catapults Godrej Consumer Products Ltd (GPCL) to becoming one of the strongest performers in the home and personal care space in India. It further strengthens our commitment to India being one of the key drivers of our revenue and profits,"

In another statement, Sara Lee Chairman and CEO Brenda Barnes said,"Having partnered with Godrej for 15 years, we are confident that their great team will build on the success we have shared to date and ensure that these leading brands will continue to thrive,"

Godrej claimed that the acquisition would make the company the second largest household insecticide manufacturer in Asia excluding Japan.

In the last three months, this is the third acquisition by Godrej Group. Earlier it bought Megasari, an Indonesian household products company. Godrej paid somewhere between Rs.1.2 billion to Rs.1.4 billion for the acquisition. This was followed by the acquisition of Nigerian personal care brand Tura in March 2010.

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