KKR picks controlling stake in Vini Cosmetics for $625 million

Our Bureau Mumbai | Updated on July 12, 2021

This is the largest PE-led buyout of a consumer goods company in India

Global investment firm KKR has acquired a controlling stake in personal care and beauty products company Vini Cosmetics for $625 million. The investment is the largest PE-led buyout of a consumer goods company in India.

Vini, founded in 2010, makes branded deodorants, cosmetics and toiletries through its flagship brand FOGG. It owns other brands such as OSSUM and GlamUp and has a distribution network of 700,000 points of sale and 3,000 dealers, supported by a sales team of 1,200.

Stake from Sequoia

KKR is buying the stake from Sequoia Capital and Vini’s Founder Group – led by Darshan Patel, Chairman & Joint-Managing Director, and Dipam Patel, Joint-Managing Director. The co-founders will continue to hold some stake in Vini. Darshan will continue as the Chairman of Vini’s Board and Dipam will be appointed as Vice-Chairman of the Board. The transaction is expected to close in July.

In addition, the existing investor WestBridge Capital will acquire a further stake from the founder group to increase its shareholding in Vini. “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,” Darshan said in a statement.

Gaurav Trehan, Partner at KKR, said, “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 its investment from its Asian Fund IV. KKR’s investment in Vini builds on its long-track record of investing in India, where it has committed approximately $5.7 billion of equity through its private equity strategy since 2006. Over the past 12 months, the firm has made several investments in the country, including in JB Chemicals, Lenskart, Five Star, Reliance Jio and Reliance Retail.

Published on June 21, 2021

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