Mamaearth parent Honasa calls off Fluence Pharma acquisition

BENGALURU: Mamaearth parent Honasa Consumer has called off its proposed acquisition of a 58% stake in nutraceuticals firm Fluence Pharma, a little over two months after announcing the transaction at an enterprise value of around Rs 135 crore.In a stock-exchange filing on Tuesday, Honasa said conditions required to close the transaction under its share purchase agreement with Fluence had not been fulfilled. It did not disclose which conditions were unmet or whether these were related to findings during due diligence.The deal was announced on June 23 and was expected to close within eight weeks. As recently as August 13, Honasa’s management told analysts that the transaction was undergoing due diligence and the process of fulfilling the pre-closing conditions. It had recently said that integration would begin after these were completed.Honasa had proposed buying the initial 58% stake from Fluence’s existing shareholders. The remaining 42% was to be acquired in two tranches over five to seven years. The Rs 135 crore figure represented Fluence’s enterprise value, while the final transaction value was subject to closing adjustments.Founded by Amit Bhusari and dermatologist Rajendra Singh Rajput, Fluence sells over-the-counter supplements for hair and skin conditions. Its products are based on a patented approach called Cyclical Nutrition Therapy, under which supplements are administered in a prescribed sequence.Fluence had provisional revenue of about Rs 40 crore and an operating margin of more than 20% in FY26, Honasa had said. Hair-focused products accounted for over 70% of its revenue, while its products were distributed through a network of more than 3,000 dermatologists. Honasa’s acquisition presentation had outlined plans to build a Rs 500 crore nutraceuticals franchise.Honasa said the cancellation would not alter its nutraceuticals strategy. The company has already created a separate subsidiary, Honasa Health, for the category and said it would continue evaluating both internally developed products and acquisitions. It did not say whether the Fluence deal’s collapse would affect the Rs 500 crore ambition.Get the latest Business News and Live updates. Download the TOI app.