American private equity firm KKR on Thursday said that it has completed the acquisition of a majority stake in Darshan Patel promoted Vini Cosmetics, a leading branded personal care and beauty products company in India,
On 22 June, KKR had announced that it was buying a controlling stake in Vini Cosmetics, the owner of the Fogg brand of deodorants, from the founders and Sequoia Capital for $625 million. While the financial details were not disclosed, a person aware of the transaction told Mint that KKR was buying around 55% in Vini Cosmetics, valuing the company at more than $1.1 billion
Following the conclusion of the transaction, Vini’s Co-founders continue to hold a significant stake in the Company. “Darshan Patel remains in his role as Chairman of the Board, while Dipam Patel has been appointed as Vice Chairman of the Board,” KKR said.
Vini manufactures, markets, and distributes branded deodorants, cosmetics, and toiletries. In addition to owning one of the largest personal care product distribution networks in India, the company also sells its products internationally in 50 countries, with significant presence in South Asia and the Middle East.
The co-founders and KKR will work together with Vini’s management team to grow new product categories, expand its e-commerce platform, and further broaden its distribution network.
“KKR’s industry experience, deep expertise, and global network are invaluable resources to Vini and its long-term success as we continue to expand our business and capture strong consumer demand for high-quality personal care products in India and other fast-growing markets around the world,” said Darshan Patel, chairman of Vini Cosmetics.
Vini Cosmetics’ revenue rose 21% to ₹1,070.9 crore for the year ended 31 March 2020 from ₹886.9 crore in the previous year, according to the latest filing with the registrar of companies. Profit rose 38% to ₹194.7 crore from ₹141.6 crore.
KKR made the investment from its Asian Fund IV.
For KKR, the transaction reflects its new and growing focus on buyouts in India as against its earlier mainstay of credit investments. This is the third major buyout for the PE firm in the past two years.
In December, KKR named Gaurav Trehan as the new chief of its private equity business in India, while Sanjay Nayar, who set up shop in the country more than a decade ago, was made the chairman of the buyout firm in India.
Apart from the major buyouts of JB Chemicals and Pharmaceuticals and waste management firm Ramky Enviro, in the past 12 months, the PE firm has invested in Lenskart, Reliance Jio and Reliance Retail.
Source: Mint