Business – Marico acquires Colgate-Palmolive’s ‘Code 10’ brand
MUMBAI: FMCG player Marico said its Malaysian arm has acquired hair-styling brand ‘Code 10’ from Colgate-Palmolive for an undisclosed amount.
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This acquisition marks the company’s entry into the Malaysian hair styling market, which is estimated to be about RM 150 million (Rs 203.82 crore).
“The deal, for an undisclosed consideration, envisages the acquisition of the brand Code 10 and related IPR by Marico Malaysia Sdn Bhd, a wholly owned subsidiary of Marico Middle East FZE,” the company said.
Code 10 range comprises hair creams and hair gels, and enjoys a double digit market share in the country. Marico is already present in Malaysia through its coconut oil brands Parachute and Nihar.
“Code 10 brings strong consumer equity. We believe that with investments behind the brand it can chart a new growth trajectory for itself,” Marico Chief Executive Officer International Business Vijay Subramaniam said in a filing to the National Stock Exchange.
As part of the transaction, Marico Malaysia Sdn Bhd and Colgate-Palmolive Marketing Sdn Bhd have entered into a Transition Services Agreement, where Colgate-Palmolive will continue to distribute the Code 10 range of products for a limited period.
“The sale of the Code 10 brand is consistent with Colgate-Palmolive’s strategy to focus on its fast growing oral, personal and pet care businesses,” the statement added.
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