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Everstone Group invests $35 million in OmniActive to up nutra growth
Wednesday, 04 January, 2017, 08 : 00 AM [IST]
Our Bureau, Mumbai
The Everstone Group invested $35 million in Mumbai-based OmniActive Health Technologies Ltd to further accelerate its growth in the fast-expanding nutraceutical space. The deal is the former’s third in the healthcare and wellness sector in less than a year.
OmniActive is a leading supplier of naturally-sourced ingredients for eye health, weight management and heart health to global nutraceutical companies that provide food supplements and nutritional fortification.
It has a research-driven approach, state-of-the-art manufacturing facilities, well-equipped research and development (R&D) centres across India and Canada, and sales and marketing presence across the United States, Europe and Asia.
In the last 18 months, innovation-driven OmniActive completed 12 human clinical trials in healthy populations across its portfolio of branded ingredients. The company has a strong presence in the United States, and is working to achieve similar success in Europe and Asia.
The Everstone investment — which gives it a significant minority stake — will help OmniActive diversify and expand its offerings. The latter will use the proceeds from this deal in its inorganic growth strategy and execute the acquisition opportunities it has identified.
Sameer Sain, co-founder and managing partner, Everstone Group, said, “This investment will help OmniActive scale its already strong presence in the fast-growing nutraceutical space. We are excited about partnering with the Mariwala family and building a world-class global business.”
OmniActive was founded in 2005 and has, over the last decade, 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.
Sanjaya Mariwala, managing director, OmniActive Health Technologies Ltd, said: “We welcome this partnership with the Everstone Group.”
“With the support of its experienced teams and funding, OmniActive looks forward to building on our history of solid organic growth by further strengthening our presence globally using innovative products and technologies,” he added.
“This will be done by also growing inorganically to bring a wider product portfolio of responsibly-made ingredients to our customers through our strategic acquisitions,” Mariwala added.
The global nutraceutical supplement market was estimated at $108 billion in 2014 and is expected to touch $168 billion by 2020.
The United States is the largest market, accounting for slightly more than one-third of global sales. In India, according to a study published by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), the nutraceutical industry is expected to reach $6.1 billion by 2020.
The growth in India will be fuelled by rising awareness about lifestyle diseases and the need for healthier lifestyles, the spread of urbanisation, an increasing middle-class population with a higher disposable income, and the rising demand for supplementary nutrition for a healthier life.
Avendus Capital advised OmniActive on this deal as the investment banker.
The OmniActive investment will be Everstone’s fifth from its third private equity (PE) fund (Everstone Capital Partners III) that closed in September 2015, and the third in the pharmaceutical and wellness sector.
It acquired a majority stake in Rubicon Research, a pioneering drug delivery technology company, in October 2016, which was preceded by Everstone taking a majority stake in Ascent Health, an Indian pharmaceutical delivery services provider, in March 2016.
Everstone will be represented by Deep Mishra, its managing director, who will join OmniActive’s board as a nominee director, and internationally reputed nutraceutical expert Leendert Staal, who was the chief executive officer of DSM Nutritional Products between 2008 and 2013.
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