Hemas consolidates FMCG position acquiring Atlas
Hemas Holdings PLC acquired 75.1 percent of Atlas Axillia Co (Pvt) Ltd, Sri Lanka’s leading school and office brand, for a consideration of Rs. 5.7 billion. The existing shareholders of Atlas will retain a stake of 24.9 percent in the company post-acquisition.
Nirmal Madanayake, Managing Director of Atlas Axillia Co. said, “Atlas Axillia is on a great journey of growth and we were keen to take our organisation to the next level. We went through a rigorous process to find the right partner, and we saw a great business and cultural fit with Hemas. Both our organisations have a rich history of bringing loved brands to Sri Lankan homes and have served the Sri Lankan consumer with high quality, affordable and innovative products. Both Atlas and Hemas have always felt that our most valuable asset is our team and we strive to empower the people in our organisation. I am deeply proud of the Atlas journey over the past 58 years and of the place that this brand holds in Sri Lankan consumers’ hearts. As we embark on the next phase of growth, we are delighted to have a high quality partner with similar values.”
“Hemas Holdings PLC is expanding its presence in the Sri Lankan consumer market by acquiring one of the most respected local brands with market leading positions for its notebooks, pens, pencils and colour products. Today’s consumers seek out premium, innovative and designoriented products and Atlas has demonstrated its ability to do this repeatedly, resulting in its unique position as the most loved school and office brand,” said Steven Enderby, Group Chief Executive Officer of Hemas Holdings PLC. “Consumer stationery is a new and exciting category for Hemas with significant potential and we will bring the best of our consumerfocussed mindset to deliver superior value to Atlas’ many customers across the island. We look forward to working closely with the team at Atlas and building on their considerable success.”
Atlas will become the third largest business in the Hemas Group and will operate independently as a subsidiary of Hemas Holdings PLC. Hemas aims to continue to drive Atlas’ excellent track record of sales growth; and strengthen its market leading position, highly effective lean manufacturing and enviable dividend track record. The Group will cross-fertilise brand and marketing insights between the business and its Home and Personal care portfolio as well as deliver route to market excellence through our two significant island wide sales and distribution networks. In addition, Hemas will look to reduce funding costs and enhance talent attraction and development at Atlas.