Global buyout major KKR on Monday announced a $625 million or Rs 4,600-crore investment in deodorant maker Vini Cosmetics for a controlling stake.
The private equity major has signed a definitive agreement 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 sell stakes, as per an official statement.
The co-founders of the 11-year-old company, which manufactures and markets brands like FOGG, will continue to hold a significant stake in Vini and will collaborate with KKR in the next phase of the company's growth, as per the statement.
In addition, existing investor Westbridge Capital will acquire a further stake from the founder group to increase its shareholding, it said.
The statement, which did not specify the exact quantum of stakes to be held by the shareholders in Vini, said Patel will continue to be the chairman while Dipam Patel will be appointed as the vice chairman. The transaction is expected to close by next month, subject to customary closing conditions.
"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 partner Gaurav Trehan said.
KKR is excited to work with the Patels and their team to capture new growth opportunities stemming from a young, emerging middle-class that increasingly seeks upgraded products, he said, affirming that the investment underscores company’s commitment to support innovative and dynamic companies in India, where it has invested $5.7 billion till 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 said.
He added that the company is looking forward to leveraging the buyout major’s global platform, resources and operational expertise to take Vini to the next level by expanding its e-commerce platform, growing new product categories, and broadening our distribution networks.
KKR is making its investment from its Asian Fund IV, the KKR statement said, adding that the last 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 legal advisor to the Founder Group. Steer Advisors was the transaction advisor. KKR was additionally advised by KPMG, EY, AZB & Partners and STB.
The transaction is expected to close in July 2021, subject to customary closing conditions.
Vini's distribution networks include 700,000 points of sale and 3,000 dealers, supported by a sales force of 1,200 people.
Vini's products are also sold internationally through a network of general trade and modern trade channels covering 50 countries, with significant presence in South Asia and the Middle East.