Local conglomerate ACI has sold a portion of its portfolio of household brands to a US-based company for Tk 250.54 crore, a move that is likely to boost competition and ensure quality products.
Under the deal inked on Friday, SC Johnson & Son will own the ACI brands, including ACI Aerosol, Mosquito Coil, Cockroach Killer Spray, Angelic Air Freshener and Vanish Toilet Cleaner.
ACI Formulations will continue to manufacture the insect control, air care and toilet care products for the next five years, while ACI Ltd will distribute them, according to a notice published by ACI yesterday.
The deal strengthens SC Johnson's footprint in the growing Bangladesh market, Fisk Johnson, chairman and CEO of SC Johnson, said in a statement.
This is the first time that a Bangladeshi company has sold locally established household brands to a global company at a premium price, according to industry insiders.
“This acquisition is a positive sign for the Bangladesh market. It will help customers get quality products and promote local brand development,” said Shariful Islam, founder of Bangladesh Brand Forum.
Global companies are eyeing the country's fast-moving consumer goods segment due to the huge population base and the impressive economic growth, he said.
Since its inception in 1967, ACI Aerosol has been a noted product in Bangladesh. In June 2008, the company launched the ACI Cockroach Spray, the first-ever locally-manufactured cockroach-killing spray.Vanish Quick Action Toilet Cleaner has been part of the ACI portfolio since 2003, but it was reborn in 2008 with new and attractive packaging in two different sizes: 500ml and 750ml.
Angelic Air Freshener is the leading locally manufactured air freshener.
Mosquito coil, Aerosol and air freshener account for 48.54 percent of ACI Formulations's total sales of Tk 234 crore in 2013, according to the company's annual report.
SC Johnson employs about 13,000 people worldwide, with sales of $9 billion a year. It has operations in more than 70 countries and sells products in virtually every country around the world, according to the company's website.
Its product portfolio includes global brands such as Pledge, Duck, Mr Muscle, Windex, Scrubbing Bubbles, Glade, Raid, Baygon and Ziploc. Earlier this month, SC Johnson purchased HomeBrands AS from Unilever CR in the Czech Republic.
HomeBrands' products include pest control, home cleaning and air care brands such as Biolit insecticides, Diffusil repellents and Citresin air fresheners.
ACI's shares closed 1.65 percent lower at Tk 526 on Thursday, bringing its market capitalisation to Tk 1,839.39 crore on the Dhaka Stock Exchange.