KKR takes control of Vini Cosmetics for USD 625 mn

KKR, a leading global investment firm, and Vini Cosmetics, a leading branded personal care and beauty products company on Monday announced the signing of a definitive agreement pursuant to which the Company’s Founder Group – led by Darshan Patel, Chairman & JMD, and Dipam Patel, JMD– and Sequoia Capital will sell a majority stake in the Company to KKR for approximately $625 million (Rs 46 billion). 

The Co-Founders will continue to hold a significant stake in Vini and collaborate with KKR in the next phase of the Company’s growth. 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 manufactures, markets and distributes its branded deodorants, cosmetics and toiletries through its flagship brand FOGG and other widely recognized brands, such as OSSUM, GlamUp, and several others. 

Vini has built one of India’s largest personal care products distribution networks with approximately 7,00,000 points of sale and 3,000 dealers, supported by a sales force of 1,200 people. 

Vini’s products are also sold internationally through a network of general trade and modern trade channels covering 50 countries, with significant presence in South Asia and the Middle East. 

Upon completion of the transaction, the Co-Founders and WestBridge Capital will continue to hold a significant position in Vini. Darshan Patel will continue as the Chairman of Vini’s Board and Dipam Patel will be appointed as Vice Chairman of the Board. 

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 Lenskart; Five Star; Reliance Jio; and Reliance Retail. 

Shardul Amarchand & Mangaldas acted as legal advisor to the Founder Group. Steer Advisors was the transaction advisor. KKR was additionally advised by KPMG, EY, AZB & Partners and STB. 

The transaction is expected to close in July 2021, subject to customary closing conditions.