Marico acquires 53.98% stake in HW Wellness; stock adds ~1%

24 May 2022 , 10:54 AM

Marico Limited has made a strategic investment and acquired a stake in HW Wellness Solutions Private Limited, a leading Digital-first brand in the healthy breakfast and snack segment under the brand name “True Elements”.

Under the aforesaid transaction, the Company has acquired 53.98% of the paid-up share capital of HW Wellness and it has accordingly become a subsidiary of the Company.

Acquisition of equity shares of HW Wellness was completed at a mutually agreed pre-money enterprise valuation. The said pre-money enterprise valuation has not been disclosed by the company due to reasons of confidentiality.

Saugata Gupta, MD, and CEO, of Marico Limited, said, “True Elements is another step towards expanding our total addressable market in the healthy foods segment. We believe the ethos of the brand complements the purpose that drives Marico. The exciting range of products brings to life the rare and virtuous blend of quality, taste, and health at the right price. This adds another digital-first brand in our portfolio, which not only has a distinct proposition but also exhibits strong fundamentals along with a growing digital and offline presence.”

This transaction will expand Marico’s presence in the healthy foods segment and accelerate its digital transformation journey by adding another digital-first brand with a strong and differentiated proposition in its portfolio.

Marico is currently trading at Rs534.90 up by Rs3.5 or 0.66% from its previous closing of Rs531.40 on the BSE. The scrip opened at Rs540.60 and has touched intraday high and low of Rs540.60 and Rs527.35 respectively.