Dabur India Ltd has acquired 100% equity in Namasté Laboratories LLC and its three subsidiary companies—Hair Rejuvenation & Revitalization Nigeria Limited, Healing Hair Laboratories International, LLC, and Urban Laboratories International, LLC along with its South African arm—for $100 million, in an all-cash deal. This marks Dabur’s entry into the fast-growing $1.5-billion ethnic hair care products market in U.S., Europe and Africa.

“This acquisition is in line with our strategy to build a global presence in the international FMCG market,” Dabur India Ltd. chairman Dr. Anand Burman said. “The Namasté Group has a complementary product mix that can be easily integrated with Dabur and will also serve as a gateway to the U.S. market for our portfolio of consumer products. This transaction will also enhance our profitability, increase stakeholder value and substantially add to Dabur’s already strong presence in Africa, serving as one of the key pillars in strengthening our competitive position in the African continent.”

The transaction is expected to be completed by the end of the 2010 calendar year, subject to regulatory approvals in the U.S. Gary Gardner, founder and CEO of Namasté, along with the current management team, will continue to run the business as a wholly-owned subsidiary of Dermoviva Skin Essentials Inc—a subsidiary of Dabur India Ltd. Namasté’s North American sales team will also remain in place, and its existing relationships with retailers, wholesalers, distributors and suppliers will not change as a result of this transaction.

Founded in 1996 to fulfill the needs of the health-conscious consumers of African descent, Namasté Laboratories offers a range of products developed with natural ingredients. Namasté markets a portfolio of products under the Organic Root Stimulator brand and is one of the leading marketers of hair and beauty products for women of color. The company controls a 12% market share in the U.S. and enjoys significant market positions in many countries in Africa, the Middle East, Europe and the Caribbean region of North America. It has a strong multi-channel distribution platform across the U.S. in mass, retail, beauty stores and salons.