Thursday, November 5, 2009

Wipro buys part of Yardley cosmetic business for $45 mn (Lead)

Bangalore, Nov 5 (IANS) Consumer care arm of IT bellwether Wipro Thursday announced it had acquired part of Yardley cosmetic products business from the British-based Lornamead group for $45 million (Rs.2.14 billion/Rs.214 crore).
“The acquisition value of Yardley business in Asia, the Middle East, Australasia and some African markets from Lornamead is based on $24 million (Rs.1.13 billion/Rs.113 crore) revenue guidance for this fiscal,” the company said in a regulatory filing.

The overseas deal is expected to be completed by December.

Lornamead, which bought Yardley from Procter and Gamble Oct 3, 2005 for an undisclosed sum, will retain its business in Europe and the Americas.

The 239-year-old Yardley is a global brand in the fragrance product, bath and shower product, skin care and hair care product segments.

“The brand has a strong equity globally in markets, including Asia, the Middle East, Australasia and Africa,” Wipro Consumer Care and Lighting president Vineet Agrawal told reporters here.

Best known for its traditional bath luxuries, including Yardley English Lavender, the brand is available at major department stores and chemists including Boots in Britain and Wal-Mart in the US.

The London-based Yardley also holds three Royal Warrants, an honour bestowed on British firms that provide outstanding service.

“The transaction adds a very strong brand to our portfolio of personal care products. It fits into our strategy of increasing sales and brand presence in the Middle East,” Agrawal said.

“The buyout also demonstrates our focus on investing in strong brands in Asian region as a strong FMCG (fast moving consumer goods) player,” he noted

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