Enaleni announces disposal of Enaleni Pharmaceuticals Consumer Division (Pty) Ltd
Listed pharmaceutical group Enaleni announced today that it has
concluded the sale of its Enaleni Pharmaceuticals Consumer Division
(EPCD) business, together with the intellectual property. The EPCD
business, which reported half year revenues to end June 2007 of
R44.9 million and owns some of South Africa's leading personal care
and health brands targeting the growing emerging and ethnic market
such as Caivil, Just for Kids and Hercules, has been sold to Marico
South Africa Consumer Care (Proprietary) Limited (a wholly owned
subsidiary of Marico Limited, an Indian consumer products group)
("Marico"), for R92.8 million with effect from 1 November
2007.
"The sale of EPCD to Marico satisfied a number of the requirements
we had identified," says Jerome Smith, Enaleni Pharmaceuticals
CEO. "Aside from the offered purchase price, other factors
which led us to accept their offer were Marico's willingness to
retain the existing staff complement and the swift finalisation of
the sale agreement which has enabled management to conclude the
disposal timeously and continue to focus on the pharmaceutical
business. Subject to South African Reserve Bank and Indian
Regulatory Approvals, the sale is unconditional, and with the
business continuing to operate from its current premises in Mobeni,
Durban, there will be no disruption to our loyal customers."
Marico is a leading Indian Group in Consumer Products &
Services in the Global Beauty and Wellness space with a market
capitalisation of USD 1 billion. Marico's Products and Services in
Hair care, Skin Care and Healthy Foods generated a Turnover of
about Rs.15.6 billion (about USD 380 Million) during 2006-07.
Marico markets well-known brands such as Parachute, Saffola,
Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal,
Kaya, Sundari, Aromatic, Fiancée and HairCode. Marico's brands and
their extensions occupy leadership positions with significant
market shares in most categories- Coconut Oil, Hair Oils, Post wash
hair care, Anti-lice Treatment, Premium Refined Edible Oils, niche
Fabric Care etc. Marico is present in the Skin Care Solutions
segment through Kaya Skin Clinics (50 in India and The Middle
East), the Sundari range of Spa skin care products (in the USA
& other countries) and its soap franchise (in India and
Bangladesh).
Marico's branded products are present in South Asia, the Middle
East, North Africa and the US. The Overseas Sales franchise of
Marico's Consumer Products (whether as exports from India or as
local operations in a foreign country) is one of the largest
amongst Indian Companies and is entirely in branded products and
services. Marico was selected as one of the eight Indian companies
in S & P's list of Challenger Companies from various
nations, compiled globally by Standard & Poor's in June
2007.
Marico's focus on sustainable profitable growth is manifested
through its consistent financial performance - a CAGR of 19% in
Turnover and 19% in profits over the past 5 years- while setting a
record of several consecutive quarters of year-on-year growth- 32
for Profits and 28 for Sales, and distributing dividends for 27
consecutive quarters.
Mr. Harsh Mariwala, the Marico Group Chairman stated: "I am
delighted at this acquisition- It provides us an opportunity to
participate in the rapidly growing ethnic consumer products market
in South Africa. I am personally excited about this opportunity- it
helps us extend the Marico footprint to a new geography with
potential, thus taking us a step further in our shift to becoming a
global player in beauty and wellness."
With regard to Enaleni's remaining Consumer Division disposals of
Bioharmony and Muscle Science, Smith says negotiations are still
underway with the preferred bidder/s and further details will be
released in due course.