India-based Dabur reduces acquisition price of two South African firms

Consumer products manufacturer Dabur India has reduced its offer for an acquisition of South African firms D&A Cosmetics Proprietary and Atlanta Body & Health Products Proprietary that was first agreed in 2017.

In a filing with the Bombay Stock Exchange, Dabur will now pay a total of R42m ($3.5m) instead of its initial offer of R50m ($4.2m).

This new offer values D&A Cosmetics at R40.27m ($3.4m) and Atlanta Body at R1.73m ($146,600), a reduction of around R7.7m ($647,900) and R0.3m ($23,200) respectively.

The acquisitions will now be carried out by Dabur India’s subsidiary Dermoviva Skin Essentials.

D&A Cosmetics and Atlanta Body are majority owned by AJ Bodenstein.

Founded in 2000, D&A Cosmetics manufactures and sells personal care and haircare products to wholesale and retail customers in South Africa, Namibia, Swaziland, Botswana and Lesotho. The company posted revenues of R24m in 2016, an increase from R22m in 2015.

Atlanta Body sells and distributes products to salons in South Africa. The company posted revenues of R2.9m in 2016, compared to R2.8m in 2015.

In late 2016, Dabur announced its plans to buy personal care, haircare and creams businesses of the South Africa-based CTL group of companies for $1.5m, reported Vccircle.com.

In July 2016, the firm acquired South African cosmetics manufacturing firm Discaria.