Wipro Limited (NYSE:WIT) has signed a definitive agreement to acquire 100% shareholding of the L.D. Waxsons Group, a Singapore- based Fast Moving Consumer Goods (FMCG) company for an all cash consideration of about USD 144 million. Revenues on run-rate basis for FY'12 are about USD 68 million. This transaction will give Wipro, the leadership position in the facial skincare market in Malaysia and Singapore, expand its presence in China, besides enhancing its market position in other Asian markets.
L.D. Waxson Group, headquartered in Singapore, is a leading company with a wide portfolio of brands, including leading skin care brands Bio-essence and Ginvera, and health care 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, Mr. Vineet Agrawal, President, Wipro Consumer Care and Lighting, says: "We welcome LD. Waxson group to the Wipro family. We have a great track record of successful acquisitions including Unza and Yardley. 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."
Commenting on the acquisition Dr. Tor Lam Huat, Chairman of L.D. Waxson Group says, "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. Bio-essence's success is driven by providing skin care products that truly perform, with visible results for consumers. We are confident that with Wipro's marketing expertise and extensive distribution network, together we will be able take Bio-essence, Ginvera and other brands to new heights."
"This acquisition enables us to establish a significant presence in the China skin care market. It helps us to expand to Western and Eastern China markets, and enter the Taiwan market. It also makes us stronger in pharmacy channel in Malaysia." says Mr. Nagender Arya, Regional Director (East Asia, Middle East and Africa), Wipro Consumer Care and Lighting.
The transaction is expected to be closed within the next 60 days.