“[This step is] part of our strategy to expand our footprint in the region. We recognize that India is a significant and growing market. The acquisition allows us to better serve our personal care customers”, commented Aptar CEO Peter Pfeiffer.
TKH Plastics manufactures caps and closures for the personal care and cosmetics industry, and this acquisition has expanded the company’s direct personal care product offering in India, as part of its Beauty and Home segment, a company spokesperson told CosmeticsDesign.com USA.
Emerging markets strategy
Aptar acquired the Indian company for a total sum of US$18m, including $17m in cash and $1m in assumed debt. A legal name change is part of the acquisition plan and will follow soon, a company spokesperson told the publication.
TKH Plastics has been the company’s licensee for many years and despite this recent move will continue to serve the local Indian market, giving the personal care player access to this lucrative market.
The beauty and personal care market experienced healthy growth of 14 percent in 2010 in India thanks to rising affluence and greater consciousness of personal image, according to market analyst Euromonitor.
In the long term post-acquisition, Aptar expects an annual core growth rate to be in the range of four to seven percent for its Beauty and Home segment.
TKH Plastics had annual revenues of approximately $8m in its most recent fiscal year.
The latest financial figures for Aptar include a 12 percent growth in the Beauty and Home segment for the third quarter of 2011 from the year prior including growth from favorable currency exchange.
In line with this, net sales for the third quarter of 2011 rose to $387.5m from $346.2m the year prior.