Masan Consumer acquires 52 per cent in Net Detergent JSC

Thursday, Feb 20, 2020 14:56

Masan's Chin-su dipping sauce on shelves at a supermarket. Masan Consumer Corporation has successfully acquired a 52 per cent stake of Net Detergent JSC. — Photo

Masan HPC Company Limited (HPC), a wholly-owned subsidiary of Masan Consumer Corporation (MCH), has successfully acquired a 52 per cent stake of Net Detergent JSC (NETCO) at an average price of VND48,000 (US$2.07) per share, according to a press release.

This implies a full valuation of NETCO at $46 million and a price to earnings multiple of 13.

MCH plans to partner with NETCO to unlock potential synergies and drive double digit growth in the medium term.

The immediate focus will be to integrate NETCO with Masan’s general trade distribution network with 300,000 points of sale and modern trade platform with 3,000 supermarkets and minimart stores nationwide. At present, 35-40 per cent of the home and personal care market is consumed in the modern trade channel.

NETCO, established in 1968, is a local home care business. The company achieved net revenue of VND1.15 trillion ($49.5 million) in 2019, which rose 3.6 per cent compared to 2018. Post-tax net profit reached VND81 billion, up by 42.3 per cent year-on-year, primarily driven by its two popular laundry detergent brands, NET and NETSOFT.

In 2018, NETCO delivered net revenue of VND1.1 trillion and post-tax net profit of VND57 billion.

The company’s current market share in the laundry segment is 1.5 per cent, currently trailing Unilever (54.9 per cent), Procter and Gamble (16.0 per cent), Dai Viet Huong (11.6 per cent), LIX (2.7 per cent) and Vico (2.4 per cent).

MCH, a subsidiary of Masan Group Corporation, is one of Viet Nam’s largest branded food and beverage companies with large consumer categories such as seasonings, convenience food and beverages. MHC’s well-known brands include Chin-su, Nam Ngu, Tam Thai Tu, Omachi, Kokomi, Vinacafe, Wake-Up, Wake-up 247, Vivant and Vinh Hao. — VNS

Comments (0)