S H Kelkar Acquires Italy-based Creative Flavours & Fragrances Company
S H Kelkar and Company Limited (SHK), the largest Indian-origin Fragrance and Flavours Company in India, announced that it is in the process of acquiring Italy-based Creative Flavours & Fragrances S.p.A. ("CFF"). SHK and the current shareholders of CFF have reached an agreement, under which SHK would be acquiring 100% of share capital over two to three years, of which 51% paid share capital to be acquired upfront for approx. Euro 12 million (CFF's revenue from core fragrance business in calendar 2016 was Euro 13.4 million). Remaining stake shall be acquired within three years, consideration for which shall be paid based on the acquired Company's performance. The Company proposes to fund the entire investment through internal accruals.
The earnings accretive acquisition is in-line with SHK's growth strategy to expand its international footprint, extend its presence and build talent in the focused categories of fine fragrance and fabric care. The acquisition further reinforces Company's vision to emerge as one of the top fifteen global players within the next decade. CFF has a strong product portfolio particularly in the Fine.Fragrances and Fabric care segments, with solid global and regional client relationships. This acquisition will enable SHK to extend its presence in these focused categories as well as build global clientele.
CFF is a leader in the production and distribution of fragrances in Italy. Headquartered in Milan, CFF products are sold in over 32 countries worldwide with the reputable presence in Europe, Middle East and Africa, with in-depth strength in fragrances for fabric & home care.