Mumbai: Marico Ltd has acquired the 'Fiancee' hair care brand owned by Egypt-based Ready group, thereby marking its entry into the $38 million (Rs170 crore) hair-care market in that country. The deal, for an undisclosed consideration, envisages acquisition of the brand by Marico as also direct investment in Egypt. The agreement has and a non-compete clause.

The Fiancee range includes hair creams and hair gels. Fiancee is a market leader and commands a 20-per cent share of the Egyptian pound 215 million hair care market. The brand is a market leader in key segments such as gels and gel creams. Marico's acquisition gives it access to the manufacturing and sales infrastructure for the brand.

"This footprint in Egypt will help us widen our strides in the international hair care market," said Marico group chairman Harsh Mariwala.

Sayed El Ready, chairman of the Ready group, expressed confidence that Marico, with its expertise in the hair care segment, would make a big success of the Fiancee brand.

Marico had reported Rs117 crore turnover in its international business during FY 2006 - about 10 per cent of the group's revenue. This acquisition is expected to provide a fillip to Marico's international operations.

This is Marico's fifth acquisition in 18 months. In January this year it had acquired Nihar perfumed coconut oil brand from HLL, Manjal soap from Oriental Extractions, a Kerala-based company and toilet soap brand from a Bangldesh-based Aromatics Cosmetics in October 2005 and cooking oil brands Parachute and Saffola from Bombay Oil Mills Co.

Marico plans to conclude the deal in the next six months, making payments in two trances, based on the brand's performance. Marico has already paid one using a short-term loan facility.

Marico said it would take a fresh look at its financing pattern and would modulate the debt and equity mix suitably. Marico shareholders had already approved a financing plan that envisaged raising funds up to Rs 500 crore by way of debt and/or equity.

The company said there is no formal proposal as yet before the board.

Ernst & Young are advising Marico on this transaction. The Ready group is being advised by HC Securities & Investment, Cairo, Egypt.