Langham Capital advises Wipro Limited on Yardley acquisition
5th November 2009
One of India’s leading FMCG companies, Wipro Limited, has signed an agreement to acquire the Yardley business in Asia, Middle East, Australia and certain African markets for consideration of approximately $45.5 million, from UK-based Lornamead Group. Langham Capital acted as exclusive financial advisor to Wipro Limited.
This is the second largest acquisition made by the Consumer Care and Lighting division of Wipro Limited (its FMCG arm) following its acquisition of Unza in 2007. The transaction is expected to complete by mid December 2009.
Yardley is a strong heritage global brand established in 1770 with fragrance, bath & shower and skin care products. It is a premium priced brand and is one of the few personal care brands which holds Royal Warrants. The brand has a very strong equity globally in markets including Asia, Middle East, Australasia and Africa.
The Lornamead Group acquired Yardley from Procter & Gamble in 2005 and following Lornamead’s acquisition, it invested in the brand’s product development, distribution channels and merchandising across international markets, significantly increasing Yardley’s overall sales and profitability.
Commenting on the transaction, Mr. Vineet Agrawal, President, Wipro Consumer Care and Lighting said "This transaction adds a very strong brand to our portfolio of personal care products. It fits into our strategy of increasing sales and brand presence in the Middle East. The team handling the Yardley brand has a proven track record and I am confident they can leverage our distribution into other Asian markets. Our understanding of the Indian markets will also help to expand Yardley across this region."
"This further demonstrates our focus on investing in strong brands in Asian markets and our desire to be a strong FMCG player across Asia. The Yardley brand complements our portfolio of Enchanteur and Santoor brands. Yardley is a premium brand with strong equity amongst discerning consumers. Lornamead has achieved enormous success in reviving the brand over the last few years. We are confident that we will be able to develop the Yardley brand further to create one of the powerful brands in personal care using our strong R&D and international presence." said Mr. Nagender Arya, Regional Director (East Asia, Middle East and Africa), Wipro Consumer Care and Lighting.
Langham Capital provided financial advice to Wipro Limited.
