Marico's wholly owned step-down subsidiary, Marico South Africa (MSA) announced the acquisition of Business including related intellectual property rights of ISOPLUS, a leading hair styling brand in South Africa from JM Products SA (JM Products) and Mary L Harris, its owner for a consideration of 75 million South African Rand (circa Rs 360 million) at a revenue multiple of 1.2. This strategic buyout will enable MSA to become a full spectrum ethnic hair care company in South Africa.

The acquisition comprises purchase of manufacturing facilities, working capital and all intellectual property rights owned by JM Products and Ms. Mary L Harris. The acquisition is expected to be fully consummated by mid-Q3 FY18.

Founded in 1995, JM Products is one of the largest African-American owned companies that manufactures hair care products in South Africa. The business operates in styling products, the second fastest growing segment within ethnic hair care. With a value market share of 27%, Isoplus is the leader in the styling segment, with oil sheens and styling gels being the main contributors to the brand’s top line. In 2016, J M Products clocked a sales turnover of 62 million South African Rand (circa INR 30 Crore).

Marico is currently present in South Africa through brands like Caivil, Black Chic, Just for Kids, Hercules and Medi-Pac and is amongst the key players in the aftercare maintenance, chemical treatments and hair colour segments. This acquisition of the styling business of JM Products makes Marico's portfolio in ethnic hair care complete.

Saugata Gupta, MD and CEO, Marico said, ''This bolt-on acquisition plugs a critical gap in Marico's portfolio in the ethnic hair care space in South Africa. Isoplus has a strong consumer franchise and I am confident that the team will leverage its strengths and expertise to further grow the business.''

Shares of the company gained Rs 1.3, or 0.39%, to trade at Rs 334.00. The total volume of shares traded was 0 at the BSE (9.01 a.m., Monday).