Godrej Consumer Products has acquired the remaining 25 percent stake in Canon Chemicals, the makers of Valon petroleum jelly, through the wholly-owned Kenyan subsidiary for an undisclosed sum.
In February 2016, Godrej purchased a 75 percent stake in the manufacturer through Kenyan subsidiary Godrej East Africa Holdings Ltd.
“The company through its wholly-owned subsidiary, has acquired the balance 25 percent stake in Canon Chemicals Chemicals Limited,” said GCPL in a regulatory filing.
Post-acquisition, GCPL’s subsidiary now holds a 100 percent stake in Canon. The transaction is carried through cash.
Canon Chemicals, a Kenya based home and personal care company, manufactures and distributes products in the personal and home care categories including Valon.
GCPL had entered into an agreement for the acquisition of 75 percent stake in February 2016.
Godrej intends to use Canon Chemicals to expand its brands that include air fresheners and baby-care products as well as open shop in other African countries.
In recent times, the Mumbai-based firm has been on a shopping spree in the Kenyan beauty industry.
In 2016, it acquired nearly the entire shareholding of popular hair products Darling and Amigos-maker Style Industries.
The firm then said it had taken an extra 39 percent stake in Style Industries bringing the total holding to 90 percent — having earlier acquired 51 percent.
Style Industries, maker of hair additions including braids, weaves, extensions and wigs, operates from Nairobi and Ruiru, where it employs thousands of people.
Godrej, which makes products ranging from soap to beauty products, made the revelation in filings with the Bombay Stock Exchange and the National Stock Exchange of India.
The race to acquire Kenyan beauty product companies has heated up in the past few years. Flame Tree Group made an acquisition in January 2016, in a bid to exploit the regional cosmetics market, which was estimated to be worth Sh23 billion as of 2018.
In 2013 L’Oreal, one of the top global cosmetic companies, purchased InterConsumer Products, targeting Kenya’s fast-growing lower end of the market, where it had no presence.