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Godrej to buy out Sara Lee’s stake

Godrej to buy out Sara Lee’s stake
PTI
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First Published: Sat, Jul 25 2009. 04 32 PM IST
Updated: Sat, Jul 25 2009. 04 32 PM IST
New Delhi: Godrej Consumer Products is looking to acquire control of its FMCG joint venture with US- based Sara Lee Corp. that manufactures insect repellents, among other things.
Godrej Sara Lee is the joint venture between Sara Lee and Godrej. The US firm holds 51% stake in the JV, while Mumbai-based Godrej group has the remaining 49%.
“There is a possibility of us buying out 51% share of Sara Lee under the right circumstances and conditions,” Godrej Group of Industries Chairman Adi Godrej said in an interview with CNBC-TV18.
He said the company has already announced that it is buying the stake of Godrej industries in the 40-year old Godrej Sara Lee and the deal is consolidated.
Shares of the two companies will be swaped effective from 1 June and the total issued capital of Godrej Consumer Products’ will increase by about 22%, he said.
Asked if the company is looking at growing through the inorganic route, Godrej said, “We would like to grow considerably through the inorganic route. We have cash in our books with the possibility of further leveraging our balance sheet.”
“I think over a period of time the international salience will also increase because a lot of our inorganic opportunities are outside India and we are going through acquisitions outside India,” he added.
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First Published: Sat, Jul 25 2009. 04 32 PM IST