KKR Acquires Majority Stake In Fogg Deo Manufacturer For $625 mn
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American global investment firm KKR on Monday announced that it will be acquiring a majority stake in Vini Cosmetics at an exchange of $625 million. A definite agreement signed between Vini Cosmetics’ Darshan Patel and Dipan Patel along with Sequoia Capital states to sell majority of stakes of the Indian personal care and beauty product brand to KKR for INR 46 billion ($625 mn).
The investment from KKR is part of its Asian Fund IV. KKR has till date invested $5.7 billion of equity in India through its private equity strategy since 2006.
As part of the deal the co-founders of Vini Cosmetics poulary known for producing Fogg deodrants will continue to hold a significant stake in the company and collaborate with KKR in the next phase of its growth. Darshan Patel will continue as the chairman of Vini’s Board and Dipam Patel will be appointed as vice chairman of the board. 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 Cosmetics manufactures, markets and distributes its branded deodorants, cosmetics and toiletries under its flagship brand name FOGG and other widely recognized brands, such as OSSUM, GlamUp, and several others.
The company has built product distribution networks with approximately 700,000 points of sale and 3,000 dealers and is supported by a sales force of 1,200 people. The company boasts to sell its product internationally through a network of general trade and modern trade channels covering 50 countries, with significant presence in South Asia and the Middle East.
Commenting on the investment, Darshan Patel, chairman and joint managing director of Vini Cosmetics said, “KKR has a proven track record of investing in the growth of some of India’s most innovative and disruptive homegrown champions, as well as in leading consumer and personal care companies globally. We look forward to leveraging their global platform, resources and operational expertise to take Vini to the next level by expanding our e-commerce platform, growing new product categories, and broadening our distribution networks.”
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.”