KKR has signed definitive agreements with Vini Cosmetics founder group led by Darshan and Dipam Patel and VC firm Sequoia Capital to acquire a controlling stake in the maker of Fogg brand
MUMBAI: US private equity firm KKR on Monday said it has signed definitive agreements with the Vini Cosmetics group to acquire a controlling stake in the company that makes Fogg brand of deodorants and other consumer brands.
KKR has invested $625 million to acquire the stake in the group that is led by Darshan and Dipam Patel and VC firm Sequoia Capital.
The founders will continue to hold a significant stake in Vini and collaborate with KKR in the next phase of the company’s growth, the PE firm said in a statement. In addition, existing investor WestBridge Capital will acquire a further stake from the founder group to increase its shareholding in Vini.
Founded in 2010, Vini manufactures and markets its branded deodorants, cosmetics and toiletries through its flagship brand FOGG and widely recognized brands, such as OSSUM, GlamUp, and others.
Vini has built one of India’s largest personal care products distribution networks with approximately 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 a significant presence in South Asia and the Middle East, the statement claimed.
Darshan Patel will continue as the chairman of Vini’s Board and Dipam Patel will be appointed as Vice Chairman of the board.
“Vini has experienced remarkable growth over the last 11 years, but 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," said Darshan Patel, chairman and joint managing director of Vini Cosmetics.
Gaurav Trehan, Partner at KKR, said, “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. Darshan and Dipam are industry pioneers, and we are excited to work with them and their team to capture new growth opportunities stemming from a young, emerging middle-class that increasingly seeks upgraded products. Our investment in Vini also underscores KKR’s long-term commitment to support India’s innovative and dynamic companies as they become leaders in their industries."
KKR is making the investment from its Asian Fund IV. Over the past 12 months, the firm has made several investments in the country, including JB Chemicals and Pharmaceuticals, a fast-growing branded pharmaceutical products company; Lenskart, a leading omnichannel eyewear retailer; Five Star, a lender to small businesses; Reliance Jio, a next-generation technology platform that provides affordable digital services; and Reliance Retail, an operator of India’s largest, fast-growing and most profitable retail business.
The transaction is expected to close in July 2021.
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