Namaste Europe

New Delhi, Nov 16, 2010: Dabur India Ltd today acquired 100% equity in Namasté Laboratories LLC and its three subsidiary companies -- Hair Rejuvenation & Revitalization Nigeria Limited, Healing Hair Laboratories International, LLC, and Urban Laboratories International, LLC along with its South African arm – for $100 million, in an all-cash deal. This marks Dabur’s entry into the fast-growing $1.5-billion ethnic hair care products market in U.S., Europe and Africa.

“This acquisition is in line with our strategy to build a global presence in the international FMCG market,” Dabur India Ltd. Chairman Dr. Anand Burman said. “The Namasté Group has a complementary product mix that can be easily integrated with Dabur and will also serve as a gateway to the US market for our portfolio of consumer products. This transaction will also enhance our profitability, increase stakeholder value and substantially add to Dabur’s already strong presence in Africa, serving as one of the key pillars in strengthening our competitive position in the African continent.”

The transaction is expected to be completed by the end of the 2010 calendar year, subject to regulatory approvals in the US. Mr. Gary Gardner, founder and CEO of Namasté, along with the well experienced management team will continue to run the business as a wholly-owned subsidiary of Dermoviva Skin Essentials Inc -- a subsidiary of Dabur India Ltd. Namasté’s North American sales team will also remain in place, and its existing relationships with retailers, wholesalers, distributors and suppliers will not change as a result of this transaction.

Founded in 1996 to fulfill the needs of the health-conscious consumers of African descent, Namasté Laboratories offers a range of products developed with natural ingredients. Namasté markets a portfolio of products under the Organic Root Stimulator® brand and is one of the leading marketers of hair and beauty products for women of colour. The company controls a 12% market share in the US and enjoys significant market positions in many countries in Africa, the Middle East, Europe and the Caribbean region of North America. It has a strong multi-channel distribution platform across the US in mass, retail, beauty stores and salons.

"We are very excited about this acquisition as it opens up new vistas for our burgeoning overseas business. This transaction will mark Dabur's entry into the hair care market in Africa and add to our already substantial and growing oral care and skin care business in the African continent,” Dabur India Ltd Group Director Mr. P. D. Narang said. “We expect this transaction to provide a tremendous platform for value creation in both the US and Africa. With this acquisition, nearly 25% of Dabur's consolidated revenue would be generated overseas.”

“Over the last few years, Dabur has been following a very disciplined and focused approach to identify acquisitions that represent a strong fit with our business,” Dabur India Ltd Chief Executive Officer Sunil Duggal said. “We have also developed strong processes to manage and integrate these acquisitions, as demonstrated in the successful integration of Balsara, Fem and Turkey's Hobi Kozmetik. We are confident that the opportunities for capitalizing on the strengths of Namasté’s business across our international operations are significant.”

"The entire Namasté management team is excited to be joining forces with Dabur," said Namasté founder and CEO Gary Gardner. "In Dabur, we have found a strategic partner who will help realize our vision of becoming the hair care brand of choice for people of colour worldwide. With their presence in Africa, and with our knowledge of the consumer of African descent, we look forward to building a global presence rooted firmly on the African continent. We believe this partnership will thrive because the two companies complement each other so well and because there is a mutual respect. We know our employees, customers, distributors and retailers will benefit from this great growth opportunity.”