`Oterra, a supplier of natural colours, has acquired natural ingredients manufacturer Akay Group for an undisclosed sum, the company said on Tuesday.
The financial details of the transaction were not disclosed but a person familiar with the transaction said that Oterra paid around $150 million.
With Akay Group's acquisition - Oterra's 4th acquisition in 14 months - the company will look to strengthen its access to the natural colours market but also get a product pipeline that will be backed by manufacturing plants and strong R&D (research and development) capabilities.
“In recent years, Akay has successfully transitioned from a pure colours and flavours business to a leading science-backed botanical ingredients business. We both believe in bringing the best of nature to the world,” said Odd Erik Hansen, chief executive officer, Oterra.
Founded in India in 1995, Kerala-based Akay Group is a player in the natural colours and nutraceutical ingredients industry. It serves over 40 countries and has four manufacturing sites in southern India with over 400 employees, the statement said.
The transaction will be subject to regulatory approval. Investec served as the financial adviser and JSA served as legal counsel to Akay Group. Rothschild & Co acted as a financial adviser; Cyril Amarchand Mangaldas and Accura as legal advisers to Oterra and EQT.
In January, Oterra acquired Food Ingredient Solution, a producer of colours and natural antioxidants. It also completed the acquisition of Diana Food’s natural colors business in December 2021.
In a similar deal, Azelis, a specialty chemicals and ingredients-focused firm reached an agreement to acquire a majority stake in the aroma chemical distributor, Ashapura Aromas Pvt. Ltd. The deal is likely to have closed at $150 million, two people familiar with the deal told VCCircle.
Pharma company Aceto acquired a majority stake in Indian firm Finar Ltd in May 2021. The Ahmedabad-based company is a manufacturer, supplier and distributor of pharmaceutical excipients, lab chemicals, aquaculture inputs and food-grade additives.
In December 2021, life science ingredients distributor Barentz International landed a majority stake in the distribution activities of Mumbai-based Gangwal Chemicals Pvt. Ltd. In 2020, IMCD, a distributor of specialty chemicals and ingredients acquired a 70% stake in Signet Excipients Pvt. Ltd with the remaining shares to be bought in 2024.
