VLCC to acquire cosmetic company Wyann International

VLCC, the Indian beauty products company, is planning to acquire Wyann International, a Malaysia-based cosmetics and spa firm, for an approximate amount of over Rs1bn ($18.83m).

According to the firm, the new acquisition will enable it to foray into the Southeast Asian market , and will also hold the distribution rights for American cosmetics brand Skin Nutrition, distributed by Wyann International in the Asian market, reported newspaper The Times Of India.

The deal, expected to be pegged between Rs1bn($18.83m) to Rs 1.5bn($28.25m), will be the biggest so far in the Indian wellness marketplace and the first for Delhi-based VLCC, founded by Vandana Luthra in 1989.

VLCC has already bought 76% in Wyann International (S) Pte, a venture in South East Asia, and is likely to acquire the remaining 24% by next fiscal year.

The firm, however, declined to confirm the acquisition.

VLCC MD Sandeep Ahuja told the newspaper that the company is in advanced talks with more than one player and can’t make any comments at this stage.

Wyann owns premium slimming and beauty services brands such as Bizzy Body and Facial First.

Earlier in 2010, the firm had signed an agreement with Skin Nutrition International, an American maker of anti-ageing, specialist skin-care and cellulite treatment products, to distribute its products across Asia.

According to a company official, the deal gives VLCC a launchpad to establish its presence in South East Asia, as it plans to roll out Wyann centres in South East Asia and add services beyond slimming, and bringing the Skin Nutrition cosmetics brand to India.

VLCC, valued approximately at Rs 40bn($753.38m) , plans to sell minority stake to one or more private equity firms, to raise funds for its further expansion plans.