HUL to acquire Vwash from Glenmark Pharma

India's biggest consumer goods firm, Hindustan Unilever, announced on Monday that it has entered into an agreement with Glenmark Pharmaceuticals to acquire its hygiene brand-VWash. The deal includes the acquisition of intellectual property rights including trademarks, design and know-how related to VWash brand.

The total consideration of the acquisition has been split into two parts, including an upfront cash payment upon closing the deal and a deferred consideration over the next three years. The transaction is further subjected to the fulfilment of certain conditions, which both parties would be working together to complete in the coming months. Until the transaction is completed, Glenmark is set to manage the business and will also continue to manufacture for HUL for an agreed period of time.

Launched in 2013 by Glenmark Pharma, VWash has established itself as a market leader in the female intimate hygiene category backed by its strong product proposition, good customer endorsements and sustained investments in brand building.

Commenting on the proposed acquisition, Sanjiv Mehta, Chairman and Managing Director of HUL stated that the acquisition provided the company, access into the currently underpenetrated and rapidly growing female intimate hygiene segment. He also added that HUL was well-positioned to scale up the business, given the strength of its market development and distribution capabilities.

Hindustan Unilever Limited manufactures branded and packaged consumer products including soap, detergent, personal care products and processed food.

On Monday, the stock closed at Rs 1,872.55, down by 8.77 per cent or Rs 179.95 per share. The 52-week high was recorded at Rs 2,307.20 and the 52-week low was Rs 1,649.70 on BSE.