Everstone Capital has agreed to acquire a controlling stake in Calibre Chemicals Pvt Ltd, a firm that makes products for pharmaceutical, nutritional and personal care segments, the firm said in a statement.
The companies did not disclose the size of the investment.
Mumbai-based Calibre makes iodine derivatives, persulfates and perchlorates, and earns two-thirds of its revenue from exports to the US, Europe and Asia, the company said.
It reported net sales of Rs 378.8 crore for the financial year that ended in March 2019 with a profit of Rs 48.8 crore. The company is yet to file 2019-20 financials.
The chairman and managing director of Calibre, Ranjit Bhavnani, owns a few milk businesses including Igloo Dairy Services Pvt Ltd, filings show.
Everstone Capital will help Calibre scale and innovate its business, co-founder and chief executive officer of the private equity firm Sameer Sain said.
The founders will continue to participate in the affairs of the company as it transforms from a family-owned unit to a professional business, Bhavnani said.
The agreement to invest in Calibre was reached “in a short period of three months”, Trivik Bhavnani, a board member of Calibre, said.
JM Financial and Alantra advised Calibre and Everstone, respectively. JSA and KPMG acted as the legal and financial due diligence advisers to Calibre. Cyril Amarchand Mangaldas and EY acted as legal and financial due diligence advisers to Everstone.
Everstone is also an investor in another nutraceuticals firm OmniActive Health Technologies, which it acquired four years ago. In fact, the PE firm has been evaluating an exit from this investment, VCCircle reported earlier this year.
The PE firm has been otherwise trying to book exits from its other investments. It is looking to sell stake in Burger King.
Everstone is in the process of raising its fourth fund, media reports have said.