Cipla Buys Ivia Beaute's Beauty Brands for Rs 130 Crore

16 Apr 2024 , 11:04 AM

Early on April 16, the price of Cipla shares remained unchanged following the announcement that the company will be purchasing a business venture from Ivia Beaute Private Limited.

Cipla was trading at ₹1,381.65 on the BSE at 9:20 a.m., up ₹0.40, or 0.03%.

A business transfer agreement (BTA) was signed by Cipla Health Limited India, a wholly owned subsidiary of the company, to buy Ivia Beaute Private Limited India’s distribution and marketing business undertaking for cosmetics and personal care products through a slump sale arrangement on a going concern basis.

Ivia’s global brands Astaberry, Ikin, and Bhimsaini were included in the acquisition.

The deal is anticipated to close within 60 days after the BTA’s signature, or on a later date that the parties have mutually agreed upon in writing. It is contingent upon the successful fulfilment of all preconditions and closing conditions specified in the BTA.

It is anticipated that this deal will improve CHL’s offering in consumer wellness and healthcare. The business stated that Ivia’s brands enhance its skin care portfolio by providing consumers with reliable and efficient solutions, complementing CHL’s offers in this area.

The acquisition would cost ₹130 Crore on closing day and ₹110 Crore after specific financial goals (milestones) are completed over the course of the following three years, as specified in the BTA.

The firm’s board of directors will meet on May 10, 2024, to discuss and approve the audited financial statements of the company for the quarter and year ended March 31, 2024, as well as to recommend, if any, a final dividend for the same period.

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