Firmenich, a Switzerland-based privately-owned company in the perfume and taste business, has agreed to acquire a majority stake in Indian seasonings maker VKL Seasoning from private equity firm True North, according to an announcement.
The sale marks the second exit this year for True North. Last month, it sold Innovative B2B Logistics Solutions to Adani Logistics.
The acquisition of VKL Seasoning will broaden Firmenich’s capabilities and customer reach in India, a key growth market for the group, while expanding its raw material palette for clean label ingredients, the company said.
“India is a critical market for Firmenich and we are committed to investing in our business here both for short and long-term growth,” said Patrick Firmenich, Chairman, Firmenich.
VKL Seasoning will retain its brand identity and operate as a standalone business within the company. Financial terms of the deal were not disclosed.
Founded in 1996, VKL Seasoning is the flagship company of the Kanji Morarji Group.
“This joint venture underpins Firmenich’s ongoing commitment to India, one of our fastest growing markets,” said Satish Rao, Chairman & Managing Director, Firmenich India. “VKL expands our presence in India, while advancing our vision to be the taste and nutrition innovation partner of choice.”
True North, formerly known as India Value Fund Advisors, was established in 1999 with a focus on investing in mid-sized profitable businesses. The firm has launched six separate investment funds with a combined corpus of over $2.8 billion, including co-investments. The firm claims to have invested in more than 40 Indian businesses.