American growth-stage investor TA Associates has acquired a majority stake in Mumbai-based nutraceutical ingredients firm OmniActive Health Technologies from Everstone Capital and others, a statement said.
Moreover, OmniActive’s founder and executive chairman Sanjaya Mariwala has increased his stake in the business and will continue to run the firm.
TA Associates and Mariwala will end up as the only shareholders of OmniActive. As part of these transactions, two unnamed investors which owned around 18% stake as well as Everstone will exit the firm.
Financial terms of the transaction were not disclosed, but it is understood that the total deal size is around $175-200 million (Rs 1,280-1,465 crore), with TA Associates putting in less than $150 million (Rs 1,100 crore).
The business is now valued at around Rs 2,200 crore ($300 million).
For TA Associates, this would be its first investment deal this year after it acquired a stake in the National Stock Exchange last July.
“We intend to leverage our strong management capabilities and TA Associates’ distinctive M&A sourcing engine to drive programmatic M&A and in-licensing to continuously deliver innovation to our customers,” said Mariwala.
OmniActive has research and manufacturing operations in Pune, Hosur and Thane in India; and sales and distribution operations in the US, Europe, India, Asia, Australia and Latin America.
“We believe that TA Associates’ global healthcare experience will be valuable in supporting OmniActive’s next phase of growth through continued organic growth and strategic acquisitions,” said Jim Hamilton, CEO of OmniActive.
OmniActive, Everstone and other selling shareholders were advised by Investec (sole financial adviser), DSK Legal and KPMG. TA Associates was advised by Houlihan Lokey USA, Shardul Amarchand Mangaldas and PriceWaterhouse Cooper, according to the media statement.