Mumbai-based nutraceuticals ingredients company OmniActive Health Technologies Ltd has acquired a majority stake in fragrance and specialty chemical manufacturer Indfrag Ltd.
The Mint newspaper reported, citing OmniActive managing director Sanjaya Mariwala, that the company has picked up an 85% stake in Indfrag and that it will buy the remaining in the next few weeks. The report also cited two people familiar with the matter as saying that OmniActive spent $80 million for the deal.
The Mumbai-based company, which had recently raised $35 million from private equity firm Everstone Capital, had earlier told VCCircle that the fundraise would help the company make an acquisition.
Bengaluru-based Indfrag makes natural extracts for dietary supplements, sports nutrition, pharmaceuticals, food and cosmetic industries. Besides domestic clients, it also exports its products to North America and Europe. It has two plants in India and a marketing and warehousing facility in New Jersey, US.
OmniActive is also planning to scout for companies in Italy, Germany and France in Europe, North America, and South Korea and Taiwan in Asia, Mariwala had said previously. These future acquisitions may be in the range of $10 million to $20 million. OmniActive may raise further equity capital or use debt funding for these acquisitions, he said.
Mariwala also said that OmniActive will consider going public when its revenue crosses Rs 1,000-1,500 crore and that the offering could then provide an exit to Everstone. The company’s revenue is around Rs 300 crore, he had claimed.
According to VCCEdge, the data research platform of News Corp VCCircle, OmniActive reported net sales of around Rs 169.8 crore for the year through March 2015.
OmniActive develops ingredients used in products such as dietary supplements, functional foods and beverages and personal care products, according to its website.
One of its products is Capsimax Capsicum Extract, an ingredient that goes into tablets, capsules and beverages used in weight management and sports nutrition. It also makes curcumin extract, a type of turmeric and ginger extract. Its marigold extract ingredient is used for products for eye health.
The company has three research and development facilities, at Pune and Thane in Maharashtra and Prince Edward Island, Canada. It has a manufacturing facility in Pune.
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