VWash was launched by Glenmark in 2013 and the brand has a strong foothold in the female intimate hygiene category. The deal includes the acquisition of intellectual property rights including trademarks, design and know-how related to the brand.
Sanjiv Mehta, chairman and managing director of HUL, said, “The acquisition of VWash gives us an entry into the currently underpenetrated and rapidly growing female intimate hygiene segment. The brand has a leadership position and fits well into the white spaces in our beauty and personal care business.”
The agreement has been split into two parts involving an upfront cash payment upon closing of the deal and a deferred consideration over the next three years. The transaction is subject to fulfilment of certain conditions, and both parties would be working together to complete this in the next few months.
Glenmark will continue to manage the business until the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time.
“We look forward to completing the acquisition and strongly believe HUL is well-positioned to further scale up this business, given the strength of our market development and distribution capabilities,” added Mehta.