Its latest acquisition target, Argencos, is a mid-sized hair care company with ‘a strong portfolio of brands’, according to GCPL.
The combined sales of the two Argentine transactions would be over $45m, the company said, making the combined portfolio a market leader in terms of sales volume in both hair color products and hair styling sprays.
Complementing Issue Group’s portfolio
The company said that Argencos’ portfolio, which includes brands such as Roby and 919, will work well with that of hair color specialist, Issue Group.
“Argencos is a perfect, complementary add-on to our earlier acquisition of Issue Group,” commented company chairman, Adj Godrej.
According to GCPL, Argencos is a strong performer in the market for hair color kit formats, with a share of 17 percent. It also has a factory in La Rioja which benefits from tax benefits as a result of its location.
GCPL growth strategy
The latest acquisition is part of the GCPL’s aim to penetrate emerging markets, and it has set out a global ‘3 by 3’ strategy which focuses on establishing a presence in three continents (Asia, Africa and Latin America) through its three core categories of hair care, personal care and home care.
According to Godrej, the two recent acquisitions in Argentina will significantly boost the company’s efforts in Latin America.
“I expect the combination of the two businesses to set us on a firm footing in achieving our plans for Latin America,” said Godrej.
Godrej said the market for hair colorants in Argentina has grown at a rate of more than 22 percent over the last two years, and is now estimated to have a value of $200m.