The Everstone Group has invested $35 million (USD) in Mumbai-based OmniActive Health Technologies Ltd. to further accelerate its growth in the fast-expanding nutraceuticals space. The deal is Everstone’s third in the healthcare and wellness sector in less than a year.
OmniActive is a leading supplier of naturally sourced ingredients for eye health, weight management and heart health to global nutraceutical companies that provide food supplements and nutritional fortification. OmniActive has a research-driven approach, state of the art manufacturing facilities, well-equipped R&D centers across India and Canada, and sales and marketing presence across the U.S., Europe and Asia. In the last 18 months, innovation-driven OmniActive completed 12 human clinical trials in healthy populations across its portfolio of branded ingredients. The company has a very strong presence in the U.S. and is working to achieve similar success in Europe and Asia.
The Everstone investment—which gives it a significant minority stake—will help OmniActive in diversifying and expanding its offerings. OmniActive will use the transaction proceeds from this deal in its inorganic growth strategy and execute the acquisition opportunities it has identified.
Sameer Sain, cofounder and managing partner, Everstone Group, said, "This investment aims at helping OmniActive scale its already strong presence in the fast-growing nutraceutical space. We are excited about partnering with the Mariwala family and building a world class global business."
OmniActive was founded in 2005 and, over the last decade, has emerged as the leading nutraceutical ingredient supplier to international markets from India, helped by the gradual shift in the nutraceuticals sector towards greater consumption of natural products.
Sanjaya Mariwala, managing director, OmniActive Health Technologies Ltd. said: "We welcome this partnership with the Everstone Group. With the support of its experienced teams and funding, OmniActive looks forward to building on our history of solid organic growth by further strengthening our presence globally using innovative products and technologies. This will be done by also growing inorganically to bring a wider product portfolio of responsibly made ingredients to our customers through our strategic acquisitions."
The global nutraceuticals supplements market was estimated at $108 billion in 2014 and is expected to touch $168 billion by 2020. The U.S. is the largest market, with slightly over a one-third of global sales. In India, according to a study published by ASSOCHAM, the nutraceuticals industry is expected to reach U.S. $6.1 billion by 2020. The growth in India will be fueled by rising awareness about lifestyle diseases and the need for healthier lifestyles, the spread of urbanization, an increasing middle-class population with more disposable income, and the rising demand for supplementary nutrition for a healthier life.
Avendus Capital was advising OmniActive on this deal as the investment banker.
The OmniActive investment will be Everstone’s fifth from its third PE fund (Everstone Capital Partners III) that closed in September last year, and the third in the pharmaceutical and wellness sector. It acquired a majority stake in Rubicon Research, a pioneering drug delivery technology company, this October that was preceded by Everstone taking a majority stake in Ascent Health, an Indian pharmaceutical delivery services provider, in March.
Everstone will be represented by Deep Mishra, managing director at Everstone India, who will join OmniActive's board as a nominee director, along with Dr. Leendert Staal, an internationally reputed nutraceutical expert who was the CEO of the global industry leader DSM Nutritional Products from 2008 to 2013.