Wipro Singapore to acquire Southern China personal care and fabric care company

It's an all cash deal.

Wipro Singapore Pte. Ltd, part of Wipro Consumer Care, today announced that it has signed a definitive agreement to acquire 100% shareholding of Zhongshan Ma Er Daily Products Limited, a Chinese Fast Moving Consumer Goods (FMCG) company, in an all cash deal.

Wipro SingaporeThis acquisition will help the company leapfrog into the leading position in South China’s personal care market besides adding critical brands to the portfolio of Wipro Consumer Care.

Post acquisition, Wipro Unza (a wholly-owned subsidiary of Wipro Singapore), which recorded revenues of RMB82 million (USD11 million) from its China business in 2007, will touch an annual run rate of close to RMB1 billon (USD150 million).

Wipro Consumer Care has a long history of successful acquisitions. These include Unza Holdings in 2007, Yardley (for Asia, Middle East, North Africa and Australasia) in 2009, Yardley UK in 2012, and L.D. Waxsons Group in 2012.

Zhongshan Ma Er has a strong footprint in China and Hong Kong and its brand portfolio includes leading personal care brands Enear, Zici; bath and shower brand Vcnic; and fabric care brands Pahnli and Sunew.

Wipro Unza has a formidable presence in China with brands like Enchanteur and Romano. The company enjoys market leading positions in the personal wash and deodorant categories in Guangdong and Hainan provinces.

Commenting on the transaction, Kumar Chander, Managing Director for Southeast Asia, Wipro Unza, said: “We are excited by this new milestone. This transaction will propel us to a strong number three position in the bath and shower market in Southern China, while significantly strengthening our fabric care business. The combined entity solidifies our market position in personal care products, which is a core category for us. I am confident that we can further leverage the strengths of the combined entities in marketing, R&D, and distribution to accelerate the growth of all our core brands, given our proven track record in business integration.”

Commenting on the acquisition, Mr Chen Rui Qiang, Chief Executive Officer and founder of Zhongshan Ma Er, said: “We are delighted to be a part of Wipro Unza. This gives us immediate access to resources that will help us fuel growth in our business, and enable us to unlock the true potential of our brands. We are confident that with Wipro Unza’s marketing expertise and its international distribution network, we will significantly expand our geographical presence and take our brands to new heights.”

“This acquisition reinforces Wipro Unza’s commitment to the China market and propels us into a leading position in the shower category and marks our entry into the fast growing high-end fabric care market. Together with Zhongshan Ma Er, we can leverage the strengths of the combined entities for driving efficiencies in our operations, and accelerate the growth of all our core brands,” said Deepak Chandran, Chief Financial Officer for Wipro Unza and L.D. Waxson.

The transaction is subject to regulatory approval.

BNP Paribas acted as the exclusive financial adviser to Zhongshan Ma Er.