India: Blackstone, Carlyle in talks to pick stake in fragrance company Indfrag

Global private equity funds, including Blackstone and Carlyle, are in talks with Bengaluru-based fragrance and specialty chemicals maker Indfrag Ltd to acquire a significant minority stake, as per a report in The Economic Times.

The news comes close on the heels of the successful IPO of SH Kelkar, indicating the growing interest by investors in fragrance companies.

Indfrag’s larger peer company SH Kelkar made a successful public listing with its IPO oversubscribed nearly 25 times. Blackstone, which had invested about Rs 250 crore (around$36 million) in the company, made nearly four-time gains from its four-year-old investment.

Indfrag has mandated Lazard to find a buyer in a deal that will value the company at Rs 1,000-1,200 crore ($145-175 million), the news report said quoting sources.

“A formal process is on. We received huge interest, especially after the gains that Blackstone could generate from SH Kelkar.  This is a niche segment and Indfrag is an equally competent company,” said one of the people involved in the negotiations.

Indfrag is a leading producer of natural extracts for the dietary supplement, sport nutrition, pharmaceutical, food and cosmetic industries. It exports products to North American and European markets besides Asia and the Middle East.

Indfrag has two manufacturing plants in India and a marketing, warehousing and customer servicing facility located in New Jersey. The company has a capacity of 1,250 metric tonnes of finished product with an emphasis in the production of a host of botanical extracts.

The company also has subsidiaries in Singapore and Switzerland and affiliates in France, Japan and South Korea,

Indfrag has revenue of Rs 300 crore (around $44 million) in 2015, with an EBITDA margin of 25%, said one of the sources

Also Read:

India: Blackstone-backed fragrance and flavour company SH Kelkar raises $23m ahead of IPO

India: Blackstone-backed perfume maker S.H. Kelkar & Co. IPO subscribed 27 times on last day of offer

Blackstone says now is interesting time to buy as investments turn attractive

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.