Masan Consumer Corporation today [Dec. 24] announced that Masan HPC, a newly established home and personal care subsidiary, has launched a tender offer to acquire up to a 60% stake of Net Detergent (Netco) in a deal worth US$28 million.

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At a price of VND 48,000 (US$2.07) per share, Masan valued the company at US$46 million and price to earnings (P/E) multiple of 19x.

Truong Cong Thang, chairman and CEO of Masan Consumer Corporation, the consumer business of conglomerate Masan, said in a statement the home and personal care (HPC) sector in Vietnam is still at the early stages of growth when compared to other developed markets.

The transaction aligns with Masan’s five year strategic game plan to broaden its product portfolio to better serve 100 million Vietnamese consumers, stated Masan in a statement.

The HPC market is one of the largest and most attractive consumer sectors in Vietnam with a total market size of US$3.1 billion, while Netco is a strategic entry point for Masan to build a diversified HPC platform.

Transaction is subject to customary regulatory and corporate approvals and is expected to be completed within two months in accordance with tender offer regulations.

Netco, established in 1968, is a local home care business. In 2018, the company delivered net revenue of VND1.11 trillion (US$47.91 million) and a net profit of VND57 billion (US$2.46 million), primarily driven by its two popular laundry detergent brands: NET and NETSOFT.

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%).

In less than a month, Masan Consumer Corporation has initiated two deals to take its businesses beyond the food and beverage sector. On December 6, Masan and Vingroup agreed to merge the latter’s retail arm VinCommerce and its subsididary VinEco into Masan Consumer.

After completing the takeover, Masan would form “the country’s largest retail group”, while Vingroup would swap its stake in VinCommerce for that of the new company and become a stakeholder.