Dabur to acquire two South African cosmetic firms

India-based consumer goods company Dabur’s South African division has signed agreements to acquire D and A Cosmetics for approximately ZAR47m ($3.6m) and Atlanta Body & Health Products for around ZAR2m ($150,000).

D and A Cosmetics develops, manufactures, and retails personal and health care products under the Long and Lasting brand name, reported Live Mint.

The firm’s portfolio of products is available at wholesalers and retailers in South Africa, Namibia, Switzerland, Botsonia, and Lesotho. Atlanta Body & Health Products sells and distributes Long and Lasting products to South African salons.

In the fiscal year ended 31 March 2016, D and A Cosmetics recorded sales of around ZAR24m ($1.9m), while Atlanta Body & Health Products reported ZAR2.9m ($220,000).

The Indian company forayed into the South African market last year, with two other acquisitions of Discaria Trading and CTL Group’s personal care, haircare, and creams businesses for ZAR18.8m ($1.5m).

Dabur's chief executive officer (CEO) Sunil Duggal was quoted by Economic Times as saying: “The market is opening now to mergers and acquisitions (M&A) after a two-year slump.

“The African haircare market is a high-potential one and the brand we have acquired gives us captive business in the mass premium hair care segment.”

Dabur’s first international acquisition was in 2010, when it bought Turkey-based cosmetic and personal care firm Hobi Kozmetik Group for $69m.