Everstone Group has agreed to invest $35 million in Mumbai-based OmniActive Health Technologies, setting the trend for the year by announcing the first private equity transaction in 2017.
Everstone, the ten-year-old India and South Asia-focussed alternate asset manager, will pick up a significant minority stake in the company, which supplies naturally sourced ingredients to global nutraceutical companies that provide food supplements and nutritional fortification, both the companies said in a statement on Monday.
The deal is Everstone’s third in the healthcare and wellness sector in less than a year.
OmniActive will use the proceeds from this deal in its inorganic growth strategy and execute the acquisition opportunities it has identified, the company said in the statement. Set up in 2005, OmniActive has emerged as the leading nutraceutical ingredient supplier to international markets from India, helped by the gradual shift in the sector towards consumption of natural products.
The company has a research-driven approach, state-of-the-art manufacturing facilities, well-equipped R&D centres across India and Canada, and sales and marketing presence across the US, Europe and Asia. The company has a strong presence in the US and is working to achieve similar success in Europe and Asia.
Avendus Capital was advising OmniActive on this deal as the investment banker.
Cofounded by former Goldman Sachs bankers Samir Sain and Atul Kapur in 2006, Everstone Capital is now the largest India-focused private equity investment firm. The OmniActive investment will be Everstone’s fifth from its third private equity fund that closed in September 2015, and the third in the pharmaceutical and wellness sector.