Mumbai: OmniActive Health Technologies, a supplier of ingredients to the healthcare and food industries, is in talks to buy a significant stake in Bengaluru-based fragrance and specialty chemicals maker Indfrag Ltd, two people familiar with the matter said.
“OmniActive is looking at acquiring a stake in Indfrag and reaching out to private equity firms and structured financing agencies for acquisition financing,” said one of the persons mentioned above.
“The deal could potentially value Indfrag at around Rs1,000-1,100 crore. The deal size is around Rs 350 crore,” added the second person familiar with the matter.
Global investment banking firm Lazard is advising Indfrag on the fund-raising.
Both OmniActive managing director Sanjaya Mariwala and a Lazard spokesperson declined to comment. An email sent to Indfrag spokesperson on Wednesday did not elicit any response.
OmniActive was founded by Mariwala, who had earlier set up Kancor Ingredients, a producer of natural food colours, ingredients, essential oils, spice oils and mints and menthols. In 2014, France-based flavours and fragrance firm V. Mane Fils acquired a majority stake in Kancor Ingredients.
The financial details of the deal were not undisclosed.
Indfrag, a producer of natural extracts for dietary supplements, sports nutrition, pharmaceuticals, food and cosmetic industries, exports its products to North America and Europe besides Asia.
The company posted revenue of Rs300 crore in 2015, with an Ebitda (earnings before interest taxes depreciation and amortisation) margin of 25% , according to The Economic Times, which also said that the company is in talks with private equity firms such as Blackstone Group LP and Carlyle Group.
Indfrag’s fund-raising effort comes after a strong market debut by Blackstone-backed fragrance and flavours manufacturer SH Kelkar and Co. Ltd. Its initial public offering was subscribed almost 27 times, Mint reported last year.
Indfrag has two plants in India and a marketing, warehousing facility in New Jersey.