OmniActive Health Technologies, which supplies ingredients to the healthcare and food industries, has acquired 85 percent stake in Bengaluru-based fragrance and specialty chemicals maker Indfrag for an undisclosed amount.
The Mumbai-based firm has also entered into definitive agreements with Indfrag to acquire the balance stake in couple of months.
"The acquisition provides us distribution capability in markets like South Korea and US. The buyout would also help us gain access to extracts which are used in production of nutraceutical products," OmniActive Health Technologies Managing Director and CEO Sanjaya Mariwala told PTI.
The buyout also provides the company with additional production capacity as well as bolster its overall product portfolio, he added.
"Indfrag is very strong in markets like Korea where they have optimum distribution set up. We expect to add around 30-35 percent in our topline due to this buyout," Mariwala said.
The acquisition includes all products related to Indfrag's food and nutrition business. OmniActive has acquired Indfrag by raising funds from various sources including the recent PE investment by Everstone.
Industry sources pegged the deal size at around USD 80 million.
Indfrag has a significant presence in the international market as a leading supplier of high quality botanical and plant extracts from India and South East Asia for the dietary supplement and nutraceuticals industry.
It has a leading position in Garcinia Cambogia, Green Coffee, Valerian and natural Caffeine extracts. Besides, the company is a prime manufacturer of other products such as turmeric, green tea boswellia and fenugreek.
"By coming together, both companies intend to spearhead industry efforts to bring to our customers fully authenticated and validated extracts that meet the emerging standards of safety, reliability, transparency and traceability," Mariwala said.
Indfrag will operate as an independent business, and OmniActive and Indfrag teams will continue to manage their respective product lines and customers.
Besides Mariwala, Deep Mishra, Managing Director at Everstone India and Chaitanya Desai, Chief Operating Officer at OmniActive, will be joining the Board of Indfrag.
Philip Samuel, Indfrag's founder will continue as Chairman of the board.
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