Home Business Vietnam’s FMCG giant Masan offers almost $28mn for 60% of local detergent...

Vietnam’s FMCG giant Masan offers almost $28mn for 60% of local detergent firm

Vietnam’s FMCG giant Masan offers almost $28mn for 60% of local detergent firm

A detergent production line of Net Detergent Joint Stock Company. Photo: Tuoi Tre

A new business of local fast-moving consumer goods giant Masan has put nearly US$28 million on the table to purchase a major stake in a domestic detergent producer, a source told Tuoi Tre (Youth) newspaper on Tuesday.

Masan HPC, which Masan Consumer Corporation has just established to specialize in home and personal care, offered to buy 60 percent of Net Detergent Joint Stock Company (Netco) at VND48,000 (US$2.07) per share, valuing the entire company at $46 million, the source said.

That means the bid price was $27.6 million, for a price-earnings multiple of 19x.

This offer is in line with Masan’s five-year development strategy to expand its portfolios, including home and personal care which is one of the largest and most lucrative industries in Vietnam, with a market size of up to $3.1 billion, said Truong Cong Thang, chairman and CEO of Masan Consumer Corporation.

“Netco is a starting point for Masan in order to build a platform to diversify home and personal care products,” Thang elaborated.

This deal is subject to approval by relevant agencies and Netco’s regulations but it is expected to be finalized within two months from the offer, he added.

Founded in 1968, Netco is one of the leading local businesses in the home and personal care industry in Vietnam.

The company raked in VND1.117 trillion ($48.3 million) in revenue in 2018, earning VND57 billion ($2.5 million) in post-tax net profit, with two popular brands Net and Netsoft.

Netco holds 1.5 percent of the detergent market in Vietnam, very small compared to 54.9 percent of Unilever, 16 percent of P&G, 11.6 percent of Dai Viet Huong, 2.7 percent of LIX, and 2.4 percent of Vico, market research firm Euromonitor said in its ‘Laundry care market in Vietnam’ report.

On December 3, Vietnamese conglomerate Vingroup announced the transfer of its VinMart+ convenience stores, VinMart supermarkets, and VinEco farms to Masan.

A retail group of a “leading scale” and “outstanding competitiveness” would be formed after this transfer, with Masan in control and Vingroup being a shareholder, the two corporations said.


Please enter your comment!
Please enter your name here

Must Read

Da Nang tops Google’s list of trending destinations in 2020

A bird's eye view of the Golden Bridge in Da Nang, Vietnam. Photo: Tuoi Tre Da Nang, a coastal city in the central region of...

Tet Viet Festival ongoing in Ho Chi Minh City

A group of artists take a selfie on the golden apricot blossom road at the Tet Viet Festival at the Youth Culture House in...

Ho Chi Minh City to launch hop on-hop off bus service next week

An open-top double-decker bus in downtown Ho Chi Minh City. Photo: Nguyen Cong Thanh / Tuoi Tre Open-top double-decker buses will start taking visitors to...

American producers pay Vietnamese musician for song in ‘Vietnam War’ docu-series after free ride

A poster of 2017 American documentary series ‘The Vietnam War’ Producers of an American docu-series on the American war in Vietnam have agreed to pay...

Cruise ship arrivals to Vietnam pick up in 2020

Passengers disembark from the Quantum of the Seas cruise ship at Phu My Port in Ho Chi Minh City on January 14, 2020. Photo:...