IIFL Asset Management (AMC), which is a part of IIFL Wealth Management, on Tuesday said it has acquired a minority stake for an undisclosed sum in TA Associates-backed OmniActive Health Technologies.
The investment has been made through IIFL AMC’s special opportunities fund series, the company said, without disclosing other financial details of the deal.
“I am pleased to welcome IIFL Asset Management Limited as a shareholder in OmniActive and this transaction is a testament to the Company’s strong growth and reinforces the private equity fraternity’s continued belief in the growth of the nutraceutical sector,” said Sanjaya Mariwala, Founder, Managing Director and Executive Chairman at OmniActive.
Founded in 2005, OmniActive offers a range of premium natural ingredients that are innovative and scientifically validated for dietary supplementation and nutritional fortification.
The company claims to be working with leading human nutrition brands and manufacturers across the world. OmniActive said it has R&D (research and development) and manufacturing operations in Pune, Hosur, Hassan and Thane in India. The company also said it has sales and distribution operations in the US, Europe, India, Asia, Australia and Latin America.
TA Associates had acquired a majority stake in OmniActive in January last year following which OmniActive’s Everstone and two unnamed investors, which held 18% stake, had exited the company.
Post the transaction, Mariwala and TA Associates had become the only investors in OmniActive. Mariwala had also raised his stake during the round. While financial terms of the transaction were not disclosed, VCCircle had reported that the deal size was expected to be around $175-200 million, with TA Associates investing about $150 million.
“We believe that this group is well poised to capture the increasing trend towards health-conscious lifestyle and focus on natural health supplements. OmniActive has built a strong reputation and deep customer relationships with leading global brands,” said Anshuman Goenka, Head – Private Equity, IIFL AMC.
IIFL AMC is a part of the Mumbai-based IIFL Group’s wealth and asset management business--IIFL Wealth Management Ltd--which counts over 10,000 high networth individuals (HNIs) and wealthy families as its clients.
The wealth and asset management company manages assets worth more than $44 billion. General Atlantic and Canadian investment firm Fairfax hold 21% and 13.64% stakes respectively in IIFL Wealth Management, as of December 2021. The company had recently roped in Clix Capital executive Aakash Desai as its Head of Private Credit.
Investec acted as a sole sell side financial advisor to the transaction.
