Everstone Group Acquires Stake in Omniactive Health For $35m
Mumbai– The Everstone Group has invested US$ 35 million in Mumbai-based OmniActive Health Technologies Ltd.(OmniActive) to further accelerate its growth in the fast-expanding nutraceuticals space. The deal is Everstone’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. OmniActive has a research-driven approach, state of the art manufacturing facilities, well-equipped R&D centres across India and Canada, and sales and marketing presence across the US, 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 very strong presence in the US and is working to achieve similar success in Europe and Asia.
The Everstone investment—which gives it a significant minority stake—will help OmniActive in diversifying and expanding its offerings. OmniActive will use the transaction 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 aims at helping 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, over the last decade, has emerged as the leading nutraceutical ingredient supplier to international markets from India, helped by the gradual shift in the nutraceuticals sector towards greater 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.
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 nutraceuticals supplements market was estimated at US$ 108 billion in 2014 and is expected to touch US$ 168 billion by 2020. The US is the largest market with slightly over a one-third of global sales. In India, according to a study published by ASSOCHAM, the nutraceuticals industry is expected to reach US$ 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 urbanization; an increasing middle-class population with more disposable income; and the rising demand for supplementary nutrition for a healthier life.
Avendus Capital was advising OmniActive on this deal as the investment banker.
The OmniActive investment will be Everstone’s fifth from its third PE fund (Everstone Capital Partners III) that closed in September last year, and the third in the pharmaceutical and wellness sector. It acquired a majority stake in Rubicon Research, a pioneering drug delivery technology company, this October that was preceded by Everstone taking a majority stake in Ascent Health, an Indian pharmaceutical delivery services provider, in March.
Everstone will be represented by Deep Mishra, Managing Director at Everstone India, who will join OmniActive’s board as a nominee director, along with Dr. Leendert Staal, an internationally reputed nutraceutical expert who was the CEO of the global industry leader DSM Nutritional Products from 2008 to 2013.
About Everstone Group
The Everstone Group is a premier India and Southeast Asia focused private equity and real estate investment firm with assets under management of US $3.3 billion. Everstone has over 200 people working across six offices—Singapore, Mumbai, Delhi, Bengaluru, Mauritius and London. The firm’s strong presence and network in India and Southeast Asia allows its existing and new portfolio businesses to build operations in the region and beyond. Everstone has been awarded ‘Private Equity Firm of the Year in India’ by Private Equity International for five consecutive years from 2011 to 2015.
For more information, visit www.everstonecapital.com
About OmniActive Health Technologies Ltd.
OmniActive Health Technologies (www.omniactives.com) offers a range of quality ingredients, that are innovative and scientifically validated to address complex challenges for customers in the dietary supplement, food and beverage space using technology-driven, sustainable solutions with application support within a global regulatory framework. OmniActive’s core products include carotenoids, plant extracts and specialty functional ingredients. The company develops IP-protected, science-backed branded ingredients from natural sources using cutting edge technologies. OmniActive leverages international R&D strengths to deploy an array of state of the art manufacturing technologies in extraction, purification, isolation and delivery of nutritional actives. Clinical research–geared towards demonstrating efficacy and claim substantiation–is the cornerstone of OmniActive’s R&D activities. The company’s centers of excellence are located in North America and India, whereas its cGMP and HACCP system-compliant manufacturing operations are located at multiple FDA inspected sites in India. Whether looking for a new ingredient to add to a finished product, or technology to enhance an existing ingredient, OmniActive delivers unmatched innovation.
For more information, visit http://omniactives.com/
