Masan spends nearly $24 million to acquire 52% stake in Net Detergent

With a full valuation at $46 million, Masan spent nearly $24 million to hold the controlling stake at the Vietnamese detergent maker.

Earlier, the Masan subsidiary publicly offered to buy up to 60 percent stake in the company, which manufactures washing products.  

NETCO, which was established in 1968, is a leading local home care business. In 2018, the company reported 2019 net revenue of $48 million, which grew 3.6% comparing to 2018 while after-tax profit was $3.3 million, which grew 42.3% comparing to 2018.

Its net profit after tax margin also improved to 7.0% in 2019, from 5.1% in 2018.

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

The market is one of the largest and most attractive consumer sectors in Vietnam with a total size of $3.1 billion and fast-growing opportunities to develop local power brands.

Masan plans to work alongside NETCO to unlock potential synergies and drive double digit top and bottom line growth in medium term, company said.

The company is expected to integrate and synergize with Masan’s general trade distribution network with 300,000 point of sales and modern trade platform with 3,000 supermarket and minimart stores nationwide.

The acquisition also aligns with Masan’s 5-year strategy to broaden its product portfolio, which serves 100 million Vietnamese consumers, it said in the statement.

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