Wipro acquires Singapore FMCG firm for Rs 786 cr

Transaction to be closed in 60 days

Wipro acquires Singapore FMCG firm for Rs 786 cr

Wipro Limited on Saturday announced that it has signed an agreement to acquire 100 per cent stake in the LD Waxsons Group, a Singapore-based fast moving consumer goods (FMCG) company for an all-cash deal of about $144 million (Rs 786 crore).

The company’s revenues on a run-rate basis for fiscal 2012  are about $68 million. This transaction, Wipro believes, will give it the leadership position in the facial skincare market in Malaysia and Singapore; expand its presence in China, besides enhancing its position in other Asian markets.

L D Waxson Group, headquartered in Singapore, is a company with a wide portfolio of brands, including leading skincare brands Bio-essence and Ginvera, and healthcare brand Ebene.

The company has manufacturing facilities in China and Malaysia and a strong footprint in Singapore, Malaysia, China, Taiwan, Hong Kong and Thailand. Commenting on the transaction, Wipro Consumer Care and Lighting President Vineet Agrawal said, “We see L D Waxson as a good strategic fit. This transaction helps us consolidate our successful facial skincare business in Malaysia to a dominant leadership position, and moves us to market leadership in Singapore as well.”

The transaction is expected to be closed within the next 60 days. “We are happy to join Wipro, a company that shares our passion in developing brands, driven by consumer insight and innovative marketing and have seen their success in this region,” L D Waxson Group Chairman Tor Lam Huat said in a statement.

The soap-to-software conglomerate has acquired close to 25 companies. Past acquisitions include Promax Applications Group (PAG), an Australia-based company for $36.5  million in 2012; the $150 million buy of US-based Science Applications International Corporation (SAIC) in 2011 and $600 million acquisition of Infocrossing in 2007. Wipro also bought Lornamead Group’s Yardley business in Asia, Middle East, North Africa for $45.5 million in 2009.

Last month, Bangalore-based Wipro announced the demerger of Wipro Consumer Care & Lighting (including Furniture business), Wipro Infrastructure Engineering (Hydraulics & Water businesses), and Medical Diagnostic Product & Services business (via a strategic joint venture), into a separate company to be named Wipro Enterprises Limited.

It added that Wipro Limited will remain a publicly listed company focusing exclusively on information technology. Wipro Enterprises Limited will stay unlisted.

In 2011-12, the IT business contributed 86 per cent of revenues and 94 per cent of the operating profit of Wipro Limited. For the second quarter ended September 30, 2012, net income stood at Rs 1,611 crore.

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