Carlyle Pays $300M For Majority Ownership In India's VLCC

  • Global investment firm Carlyle Group Inc CG bagged a majority stake in VLCC. Terms of the transaction were not disclosed.
  • Founded in 1989 by Vandana and Mukesh Luthra, VLCC is a homegrown pioneer in India's skincare, beauty and wellness market.
  • Carlyle acquired the stake by paying $300 million, Reuters reports
  • Also Read: Carlyle Raises Over $3B To Tap European Tech Boom
  • The funds managed and advised by entities affiliated with Carlyle Asia Partners will contribute the equity for the transaction.
  • The investment underscores Carlyle's overall conviction in India's long-term economic and domestic consumption growth, characterized by product premiumization and a shift in preference amongst the rising middle class towards established brands.
  • VLCC's online sales - up from 7% of total sales to 22% in the past three years - would help the skincare and beauty products brand gain a distinct value proposition, the report quoted Amit Jain, managing director and co-head of Carlyle India, told.
  • Founders Vandana Luthra and Mukesh Luthra will continue to hold a significant stake in the company.
  • VLCC will appoint Gurveen Singh and J. Suresh as independent directors to the Board. 
  • Singh retired as the Chief Human Resources Officer at Reckitt Benckiser Group Plc RBGLY.
  • Suresh, who recently retired as the CEO of Arvind Fashions Limited and started his career with Hindustan Unilever, brings to the team over four decades of experience. 
  • India's beauty and personal care industry will likely grow to $27.5 billion by 2025 from $17.8 billion in 2020, the report cited Avendus' estimates.
  • Price Action: CG shares closed higher by 4.64% at $32.45 on Monday.
  • Photo Via Company
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