Cipla’s India arm inks business transfer agreement with Ivia Beaute; shares trade flat

Cipla share price was trading flat in early trade on April 16 after it was announced the company is going to acquire a business undertaking from Ivia Beaute Private Limited.

At 09:20am, Cipla was quoting at Rs 1,381.65, up Rs 0.40, or 0.03 percent, on the BSE.

Cipla Health Limited India, a wholly owned subsidiary of the company, signed a business transfer agreement (BTA) for purchase of the distribution and marketing business undertaking of cosmetics and personal care business from Ivia Beaute Private Limited India, through a slump sale arrangement on a going concern basis, Cipla said.

The acquisition included Ivia’s brands namely Astaberry, Ikin, and Bhimsaini on a worldwide basis.

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The transaction is expected to be completed within 60 days from the signing of BTA or such other date mutually agreed between the parties in writing and shall be subject to successful completion/waiver of the conditions precedent and closing conditions as mentioned in such BTA.

This transaction is expected to enhance CHL’s consumer healthcare and wellness portfolio. Brands of Ivia complement CHL’s offerings in the skin care segment and shall enrich the portfolio with trusted and effective solutions for consumers, the company added.

The cost of acquisition is Rs 130 crore on closing date and Rs 110 crore contingent upon achievement of certain financial parameters (milestones) for next 3 years as mentioned in the BTA.

A meeting of the board of directors of the company will be held on May 10, 2024 to consider and approve the standalone and consolidated audited financial results of the company for the quarter and year ended March 31, 2024 and recommend final dividend for the year ended March 31, 2024, if any.