MANILA, Philippines — Indian firm Wipro Consumer Care (WCC) is acquiring Splash Corp.’s personal care business from the Ang-Hortaleza Corp. (AHC) for up to P11 billion.
Under the share purchase agreement signed by the parties, WCC will acquire 100 percent of AHC’s stake in Splash.
With the transaction not seen to have adverse effects on competition in the market, the Philippine Competition Commission approved the deal last February.
Splash is among the largest players in the personal care space in the Philippine market, with revenues amounting to $80 million.
The company is behind leading brands such as SkinWhite (whitening lotion); Flawlessly U (herbal beauty); Maxi-Peel (exfoliants); Vitress (hair styling aids); and, Hygienix (germicidal brand).
WCC, meanwhile, is part of Wipro Group of Companies which is based in India and us involved in global information technology, consulting and business process services, consumer care and lighting, infrastructure engineering and medical systems.
WCC regional director Nagender Arya said the acquisition would enable the company to have a stronger presence in Southeast Asia as it aims to become a major player in the region.
“This is an exciting milestone for us, given our vision of being among the top three players in personal care in Asia. This transaction gives us a market leading position in the Philippine market, which is one of the strong economies in the region and a formidable personal care market. This is our 11th acquisition and reinforces our commitment to continue to invest in emerging markets and build a strong portfolio of local jewels in terms of brands catering to strong niches in each of the markets. Brands of Splash overlap with our portfolio in the region and I see tremendous opportunity to further leverage the strengths of our manufacturing, R&D (research and development) and sourcing for Splash brands,” Arya said.
Splash’s incoming chief executive officer (CEO) Neeraj Khatri said the transaction would also enable Splash’s brands to grow further not just in the Philippines, but also overseas as well.
“This acquisition enables us to grow in Philippines market by leveraging Splash’s distribution strength across market segments. Splash’s brands can be expanded further to other international markets where Wipro has strong footprint and brands have latent equity. These brands are not only strong in the Philippines, but also have strong equity in multiple international markets like Indonesia, Vietnam, Hong Kong, Middle East and Nigeria,” he said.
Splash CEO and founder Rolando Hortaleza, who will stay as an advisor for marketing, innovation and overall transition of the business, said being part of the Wipro group would allow the company to gain access to resources to promote faster business growth.
“Wipro shares our focus of building strategy with local consumer insights as well as in driving operational efficiency,” he said.