Godrej Consumer Products acquisition of Soft & Gentle in UK will help the the company to hive off the UK business over the medium term, says Nomura Equity Research.
"While this is not a game changer for the company as a whole, the acquisition shows management’s focus to drive profitability higher across all markets. This allows the company to build scale in the UK market, which has been one of management objectives over the last year or so," Nomura analysts said in a note to clients today.
"Also ownership of the brands will allow for profitability to improve from current levels," they said.
While total consideration has not been disclosed, total sales for the Soft & Gentle brand in CY11 were 21 million pounds or Rs 1,90 crore.
