MUMBAI Personal care products maker Godrej Consumer Ltd said on Tuesday it will acquire Indonesia's PT Megasari Makmur Group, a household care company.
"Megasari is a leading FMCG company in Indonesia and it is very strong in household insecticides with a brand called Hit, which also happens to be one of our brands in India," Adi Godrej, Chairman told Reuters on Tuesday.
"So this acquisition will help us expand our 'Hit' brand globally ."
Godrej cited a confidentiality agreement and refused to give details about the deal size.
The Indonesian firm, which also makes air fresheners and wet tissues has a annual sales turnover of 5.5 billion rupees, he added.
The acquisition will be funded by a mix of debt and cash but Godrej did not give other financial details of funding.
In February Godrej told Reuters in an interview that he will close some deals by early FY11.
In December 2009, the company's board approved raising up to Rs 30 billion through debt and equity for mergers and acquisitions and Godrej said some of these funds were employed for the Megasari buyout.
The Indian soaps, deodorants and hair colour maker had recently acquired Nigerian personal care company Tura, and bought two South African haircare brands, Rapidol and Kinky, in the last two years.
Godrej said he continues to look for buys in Africa, Asia and Latin America.
However, analysts said though the topline of the firm will benefit, concerns about the FMCG firm's bottomline remain.
"What we have to look at is how the bottomline will move after this acquisition ... what is the price they have paid for this buy and if they are financing it with debt, what is the interest rate they are paying for it," said an analyst with Prabhudas Liladher.
Shares of the firm ended up 2.2 percent at 277.6 rupees in a flat Mumbai market.
(Editing by Harish Nambiar)