Global buyout main KKR on Monday introduced a USD 625 million or Rs 4,600-crore funding in deodorant maker Vini Cosmetics for a controlling stake.
The non-public fairness main has signed a definitive settlement pursuant to which Vini’s founder group led by Darshan Patel, its chairman and joint managing director (JMD), and Dipam Patel, JMD, and Sequoia Capital will promote stakes, as per an official assertion.
The co-founders of the 11-year-old firm, which manufactures and markets manufacturers like FOGG, will proceed to carry a big stake in Vini and can collaborate with KKR within the subsequent section of the corporate’s progress, as per the assertion.
In addition, present investor Westbridge Capital will purchase an additional stake from the founder group to extend its shareholding, it stated.
The assertion, which didn’t specify the precise quantum of stakes to be held by the shareholders in Vini, stated Patel will proceed to be the chairman whereas Dipam Patel shall be appointed because the vice chairman. The transaction is predicted to shut by subsequent month, topic to customary closing circumstances.
“Vini has established itself as one of the fastest-growing personal care companies in India, and the strong consumer brand loyalty for FOGG and its other personal care products is truly impressive,” KKR’s associate Gaurav Trehan stated.
KKR is happy to work with the Patels and their workforce to seize new progress alternatives stemming from a younger, rising middle-class that more and more seeks upgraded merchandise, he stated, affirming that the funding underscores firm’s dedication to help modern and dynamic firms in India, the place it has invested USD 5.7 billion until now.
“We believe we are in the early stages of what our brands can deliver as consumer demand for high-quality personal care products continues to explode in India, South Asia and other fast-growing markets around the world,” Darshan Patel stated.
He added that the corporate is trying ahead to leveraging the buyout main’s world platform, sources and operational experience to take Vini to the subsequent stage by increasing its e-commerce platform, rising new product classes, and broadening our distribution networks.
KKR is making its funding from its Asian Fund IV, the KKR assertion stated, including that the final 12 months have seen it investing in J B Chemicals and Pharmaceuticals, Lenskart, non-bank lender Five Star, Reliance Jio.
Shardul Amarchand & Mangaldas acted as authorized advisor to the Founder Group. Steer Advisors was the transaction advisor. KKR was moreover suggested by KPMG, EY, AZB & Partners and STB.
The transaction is predicted to shut in July 2021, topic to customary closing circumstances.
Vini’s distribution networks embrace 700,000 factors of sale and three,000 sellers, supported by a gross sales drive of 1,200 folks.
Vini’s merchandise are additionally offered internationally by a community of normal commerce and trendy commerce channels masking 50 international locations, with important presence in South Asia and the Middle East.
