Honasa Consumer, the parent company of Mamaearth, has called off its proposed Rs 135 crore acquisition of a 58% stake in nutraceuticals startup Fluence Pharma. The company said the deal was terminated after certain closing conditions under the share purchase agreement were not fulfilled.
Honasa Ends Proposed Fluence Pharma Deal
Honasa had received board approval in June to acquire the 58% stake from Fluence Pharma’s existing shareholders for Rs 135 crore. The secondary transaction was expected to close within eight weeks, subject to the fulfilment of specified conditions.
The company had also planned to acquire the remaining 42% stake through two secondary transactions over the following five to seven years. Honasa has not disclosed which specific closing conditions were not met, resulting in the proposed transaction being called off.
Nutraceuticals Strategy Remains In Focus
The proposed acquisition was intended to give Honasa an entry into the nutraceuticals category by combining Fluence Pharma’s cyclical nutrition therapy and dermatologist network with Honasa’s brands, distribution and marketing capabilities. Fluence Pharma sells skin and hair health supplements through more than 3,000 dermatologists and trichologists.
Honasa has identified nutraceuticals as a potential growth category, estimating its addressable market at around Rs 16,000 crore. The company had also approved the incorporation of Honasa Health as a wholly owned subsidiary to build and manage the B2C operations of its nutraceuticals business.
The move formed part of Honasa’s five-year Honasa 3.0 strategy, which targets revenue of more than Rs 5,500 crore by FY31 and an EBITDA margin above 15%. The company also aims to expand its offline distribution from around 1.2 lakh outlets to more than 3 lakh outlets while developing multiple growth engines beyond Mamaearth.
FAQs
- What is Honasa Consumer?
Honasa Consumer is the parent company of Mamaearth and owns several beauty and personal care brands.
- What is the Honasa Consumer Fluence Pharma deal?
Honasa Consumer had planned to acquire a 58% stake in Fluence Pharma for Rs 135 crore.
- Why did Honasa Consumer call off the Fluence Pharma deal?
The deal was terminated after certain closing conditions under the share purchase agreement were not fulfilled.
- What does Fluence Pharma do?
Fluence Pharma operates in the nutraceuticals space, offering skin and hair health supplements through dermatologists and trichologists.
