Azelis, a specialty chemicals and ingredients focused firm, has 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.
The deal will provide Azelis with a strong foothold in the fragrance and flavours (F&F) space in Asia Pacific, following its 2021 acquisitions of Vigon in the US and Quimdis in France, serving the Americas and EMEA regions, the press release stated.
The transaction is expected to close before the end of the third quarter, after fulfillment of customary closing conditions, it said.
The statement added, Ashapura’s extensive product portfolio strategically complements the group’s lateral value chain (LVC) in the growing F&F market segment, strengthening the offering and technical expertise Azelis provides to customers.
“Acquiring a majority stake in Ashapura is an important element of our global growth strategy that completes our F&F offering across all regions following the group’s acquisitions of Vigon and Quimdis. It allows us to become a market leader in the F&F industry with Ashapura as the cornerstone of our F&F platform in Asia Pacific,” said Hans Joachim Müller, chief executive officer, Azelis.
Launched in 2003, Ashapura represents over 225 partnerships and has over 900 clients globally. Post the acquisition, founders of the company - Ajaykiran and Nayan Gudka will lead operations after integration with Azelis.
“Azelis will give us the opportunity to further grow our business to other countries not only in the Asia Pacific but globally. Ashapura will be able to enhance the product offering to customers in India. Suppliers of Ashapura shall benefit from more synchronized supplies of products globally. Ashapura’s internal stakeholders and support systems shall get the advantage of exposure to global practices,” said Ajaykiran Gudka, founder, managing director, Ashapura.
Lincoln International, Quillon Partners and Cedge Ventures acted as advisers for Ashapura and its promoters. Trilegal and KPMG acted as legal, financial, and tax advisers for Azelis.
In a similar deal, 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 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. This deal largely aimed to strengthen IMCD’s presence in India and APAC region.
