Fem Care merger with Dabur gets Delhi HC nod

India's largest natural healthcare company Dabur India Ltd has announced that the High Court of Delhi has approved the merger of Fem Care Pharma with Dabur India Ltd. The High Court of Delhi has approved the scheme of amalgamation, which was earlier approved by equity shareholders, secured & unsecured creditors of Dabur and the Ministry of Corporate Affairs.

"This approval represents a significant step forward for Dabur in the strategy to accelerate growth in our core FMCG business. Besides giving Dabur a strong foothold in the high-growth skin care market with an established brand name FEM, this merger also offers us a platform to enter newer product categories and markets. As with our previous acquisition and subsequent integration of Balsara's Hygiene and Home products businesses, the Fem Care Pharma Ltd acquisition too would offer substantial synergies for expanding the reach of Fem's brands in all our geographies," said Mr P D Narang, Group Director, Dabur India Ltd.

The scheme of amalgamation was approved under the provisions of Sections 391 to 394 of the Companies Act, 1956 with the appointed date for the merger being April 1, 2009.

Dabur India Ltd had acquired 72.15% of Fem for Rs 203.7 Crores in an all-cash deal. After obtaining the regulatory approvals, Dabur acquired additional 20% stake for Rs 56 Crores through an Open Offer. With the completion of this transaction, Fem Care Pharma became a subsidiary of Dabur India Ltd.

Fem Care Pharma, which has a leadership position in the fairness bleach category and a strong market position in hair removal and liquid soap category, is best known for its brand "FEM'. The other brands in its portfolio include Oxybleach cream, Botanica anti-ageing cream and SAKA men's bleach. The company also has a sizeable international market presence in markets such as Yemen, Maldives, Mauritius, Malaysia, UAE, Oman etc.