Honasa Consumer, the parent company of Mamaearth, has called off its proposed ₹135 crore acquisition of a 58% stake in nutraceuticals startup Fluence Pharma after certain closing conditions under the share purchase agreement were not met, according to an exchange filing shared by inc42.com. The deal was initially approved by Honasa’s board in June and was expected to close within eight weeks.
The acquisition was structured as a secondary transaction where Honasa planned to buy the majority stake from Fluence Pharma’s existing shareholders. The company also intended to acquire the remaining 42% stake in two tranches over five to seven years. However, the filing did not specify which closing conditions were unmet, leading to the termination of the deal. Honasa highlighted its continued commitment to the nutraceuticals segment despite the setback.
The acquisition aimed to merge Fluence Pharma’s patented cyclical nutrition therapy (CNT) and its network of over 300 dermatologists with Honasa’s established consumer brands, distribution channels, and marketing expertise. This deal would have strengthened Honasa’s position in the growing nutraceuticals market, which is seeing increased consumer focus on skin and hair health supplements. The move was part of Honasa’s broader strategy to expand its consumer-focused business in this category.
Honasa stated it will continue to explore both organic and inorganic growth opportunities in the nutraceuticals space. The company’s board had approved the initial deal in June, but the transaction was called off after the closing conditions were not fulfilled, as detailed in the exchange filing reported by inc42.com.