India’s Godrej completes acquisition of remaining 40% stake in Chile Cosmetica Nacional

Indian consumer product company Godrej has completed acquisition of the remaining 40% stake of Chile-based hair colorant and cosmetics company Cosmetica Nacional.

In 2012, the company bought 60% of Cosmetica shares for an undisclosed amount.

The company stated that the acquisition is part of its strategy to bolster its penetration in the hair colour market in the Latin American region, reported PTI.

Godrej Consumer Products managing director Vivek Gambhir was quoted by BusinessLine as saying: "Buying out the balance stake is in line with our strategy to enter new geographies, first with a JV and then take full control of the asset after we have learnt about that market. This particular acquisition is less than what we paid for some of the bigger assets that we have acquired, like Africa’s Darling Group or Indonesia’s Megasari Group."

About 60% of Cosmetica Nacional’s business is into hair colours while 25% is into colour cosmetics and the remaining into hair removal segment.

Over the last few years, Godrej has been on an acquisition spree – it purchased firms that are primarily into hair care products in Nigeria, Indonesia, and Malaysia.

Earlier this year, Godrej completed its acquisition of Frika Hair, a South African company that is into the hair extensions business.