Indian consumer goods firm Wipro Consumer Care International (WCCI) expects to complete its acquisition of Philippine personal care company S Brands Consumer Care Inc. by August, while keeping the business’ local manufacturing and operations largely unchanged.
WCCI signed a definitive agreement to acquire 100 percent of S Brands, although the company declined to disclose the transaction value.
WCCI Chief Operating Officer Nagender Arya said the company expects to finalize the purchase of the firm within the next few weeks after completing most of the regulatory and procedural requirements.
‘Our aim is to close it in August,’ Arya told reporters on Tuesday. ‘I think we have passed some of those steps. There will be some more formality. But I think we are on track to do closing… in a few weeks’ time.’
The acquisition marks WCCI’s second major investment in the Philippine personal care industry after acquiring Splash Corp. in 2019, whose portfolio includes brands, such as SkinWhite, Maxi-Peel and Vitress.
Meanwhile, S Brands owns several personal care brands in the Philippines, including KERATINplus, AlcoPlus, DeoPlus, Empress, Grips and Fiona Cologne.
Following the acquisition, S Brands founder and CEO Dick Sy Ong will remain involved as an adviser, while WCCI CEO Amit Dawn will assume leadership of the business.
Arya said the rest of S Brands’ operations will continue largely unchanged. ‘The rest of the team and the business will continue as it is. We are not expecting major changes,’
The company also confirmed that S Brands’ products will continue to be manufactured in the Philippines, with Dawn saying the company also intends to retain S Brands’ existing distribution and sales network.
‘In terms of where the products are manufactured, where we sell, who is selling them, who is distributing them, I think everything continues to be the same,’ he said.
Expansion plans
The company plans to expand the product offerings of both businesses by introducing additional brands and product categories into the Philippine market.
‘Some of our initial investment will be how do you strengthen them further? Can I bring more brands using these two companies? Can I bring in more product categories in the Philippines using these?’ Arya said.
He added that while WCCI remains open to future acquisitions, the company does not expect to pursue another deal in the next one to two years.
‘If there is an opportunity of a category which we don’t have today, or we don’t have a skill set, then obviously we can look at more acquisitions. But immediately in the next one to two years, if we are able to build these two companies and the brands, I think that will be our priority,’ he said.
WCCI is the international fast-moving consumer goods arm of Wipro Enterprises, generating annual global revenues exceeding $1.2 billion.
The company, which started in 2003, now operates in more than 60 markets, has a presence across 18 countries, manages a portfolio of more than 37 brands, and runs 17 manufacturing facilities and 11 research and development centers.