Everstone makes third healthcare acquisition, investing US$35 million in OmniActive Health

Everstone makes third healthcare acquisition, investing US$35 million in OmniActive Health

India-based private equity (PE) fund Everstone Capital has invested US$35 million (about Rs 232 crore) in Mumbai-based nutraceutical ingredient player OmniActive Health Technologies for a significant minority stake on Monday.

OmniActive Health Technologies 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.

The company is equipped with the state-of-the-art manufacturing facilities, R&D centers across India and Canada, as well as sales and marketing presence across the United States, Europe, and Aisa. This latest capital will be used to help OmniActive in diversifying and expanding its offerings and implement its inorganic growth strategy.

“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,” said Sanjaya Mariwala, the managing director of OmniActive Health.

“This will be done by also growing inorganically to bring a wider product portfolio of responsibly make ingredients to our customers through our strategic acquisitions,” Mariwala added.

Founded in 2005, OmniActive, 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 sectors towards the increasing demand in the consumption of natural products.

In the last 18 months, the nutraceutical firm claims that it has completed 12 human clinical trials in healthy populations across its portfolio of branded ingredients. The company also holds a strong presence in the United States and is working to achieve similar success in Europe and Asia.

As part of the deal, Everstone will be represented by Deep Mishra, the 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.

Co-founded by Sameer Sain and Atul Kapur, former Goldman Sachs executives in 2006, Everstone Capital has been an active PE investor in India. The PE major assets that it has US$3.3 billion under management, as well as around 200 employees working across five offices located in Mumbai, Delhi, Bengaluru, Mauritius, and London.

“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,” said Sameer Sain, the co-founder and managing partner of Everstone Group.

With this deal, the OmniActive investment will also become the fifth acquisition from its third PE fund – Everstone Capital Partners III that it has closed in September 2015 as well as the company’s third acquisition in the healthcare and wellness sector which has completed in less than a year period.

Everstone acquired a majority stake in Mumbai-based drug delivery technology firm Rubicon Research Pvt. Ltd, a pioneering drug delivery technology company for approximately $33 million in October 2015. Preceded by a majority stake in Ascent Health, an Indian pharmaceutical delivery services provider, in March.

Avendus Capital advised OmniActive on this deal as the investment banker.

By Vivian Foo, Unicorn Media

Galaxy Holdings, Puji Capital announces joint venture platform to back foreign businesses in Shenzhen

Galaxy Holdings, Puji Capital announces joint venture platform to back foreign businesses in Shenzhen

Asia-based investment group Puji Capital and China-based property developer Galaxy Holdings has recently announced a joint venture agreement to create a new economic and business region in Shenzhen.

With this partnership, the two companies will be providing direct investments and act as a business incubator for foreign startups to expand in China and other high-growth markets in Asia.

This new joint venture platform is also projected to spark innovation and bridge cross-border business cooperation between China and Western countries through investment and business support.

Commenting on the deal, the CEO of Galaxy Holdings, Yao Huiqiong said, “This new platform will create new jobs and economic benefits for the city and truly define Shenzhen as the new innovation capital for China and Western business.”

“As a Special Economic Zone that is only 30 minutes’ drive from Hong Kong, Shenzhen has the most developed infrastructure and business environment in the country to help companies reach full potential,” Yao added.

Additionally, the joint venture will also target and invest in more than 10 small to medium-sized Western growth companies in each of the three core industry sectors – mobile gaming, media technology, and consumer hardware

The two companies also aim to develop separate joint ventures to enter and expand into China market, capitalise each on the rapidly growing Chinese consumer market, and establish strategic positions along the respective industry ecosystems.

“Shenzhen is already known as the epicenter of China’s booming internet, mobile, hardware, and new technology industries. With a population of 22 million, a leading growth rate among all the Tier 1 cities and the highest ratio of young professionals from 20 to 30 nationwide, Shenzhen is undoubtedly the most vibrant business city in China and positioned to be the Silicon Valley of the East,” Yao said.

Based in Shenzhen, the new innovation and business hub has already developed programmes with a preferred network of strategic partners across China for co-investments, commercial cooperation, distribution, and point of sale opportunities for Western companies the platform invests into.

“We are uniquely positioned in the market as we have participated in various cross-border investments and provided related advisory between China and the West for over 15 years,” said Alex Szeto, the Investment Director at Puji Capital.

“We have seen nearly every iteration of pitfalls and pain points for Western companies entering China,” he further explains. “So, now when we make direct investments into the US and Western companies coming to China, we can also provide a tailored and turnkey solution and strategy for success. Galaxy (Holdings) is a cornerstone brand name throughout China and we are beyond thrilled with this new venture with them.”

Founded in 1988, Galaxy Holdings is a China leading conglomerate which primarily focuses on businesses in four key areas — Real Estate, Industrial, Property Management, and Finance.

At present, the firm has a total asset scale over US$15 billion, with its real estate business expands throughout 13 cities across Pearl River Delta, Yangtze River Delta, Circum-Bohai-Sea Region, and more.

By Vivian Foo, Unicorn Media