<article>Indian private equity firm <a href="http://dealstreetasia.com/tag/true-north" target="_blank" rel="noopener">True North Capital </a>is said to be looking to exit food ingredients company VKL Seasoning by selling its majority stake.</article>

Indian private equity firm <a href="http://dealstreetasia.com/tag/true-north" target="_blank" rel="noopener">True North Capital </a>is said to be looking to exit food ingredients company VKL Seasoning by selling its majority stake.
Accordingly to a report in The Economic Times, quoting sources, True North, which holds about 55 per cent stake in VKL Seasoning, is looking at a valuation of $280 million for the company.
In 2013, the private equity firm had acquired majority stake in VKL Seasoning for $40 million, and is now targeting to get around $140 million from the stake sale. It has mandated investment firm Avendus to facilitate the stake sale.
Established in 1935, VKL makes food ingredients and flavouring solutions in India and the Middle East with a focus on quick service restaurants and processed food industries. Its products include topping marinades, bread toppings, patty seasonings, sauces and dressings for burgers, batters and cake premixes among others.
In 2011, it had sold its bulk spices and private label assets to Olam International Ltd.
According to the news report, it was not clear if promoter Mariwala family would sell the remaining stake.
Consumer products firms, especially in the food and beverages space, have been attracting both venture capital and private equity interest.
It is estimated that since 2015, PE and VC investors have put in $613 million in food and beverage consumer brands, according to data from Venture Intelligence.
Drums Food International Pvt. Ltd, the maker of Epigamia Greek yogurt and Hokey Pokey ice cream, raised $13.8 million in its Series B round led by existing investors Belgium’s Verlinvest and early-stage investment firm DSG Consumer Partners last year. In March, organic juice brand Raw Pressery raised $9.5 million from Sequoia Capital, Saama Capital and DSG Consumer Partners.
Earlier this year, a fund managed by Morgan Stanley Private Equity Asia has invested Rs 152 crore ($23.8 million) in Southern Health Foods, operator of natural health food products brand “Manna Foods”.
Two years ago, Cremica Food Industries Ltd, a Ludhiana-based food products company, has raised $15 million from Rabo Equity Advisors Pvt. Ltd, the investment advisors for India Agri Business Fund II (IABF-II), by selling a minority stake.
True North, started as India Value Fund Advisors in 1999, has launched six separate investment funds with a combined corpus of over $2.8 billion including co-investments. In the past 19 years, the private equity firm has invested in more than 40 Indian businesses. The firm raised $600 million for its latest fund, Fund VI, in August. Its past investments include cab-hailing app Meru, Magna Fincorp, KIMS Hospitals and VKL Spices.
Earlier this month, True North signed an agreement to acquire 75 per cent stake in Shree Digvijay Cement Company Ltd (SDCCL) from Brazilian cement major Votorantim Cimentos.
Last month, the private equity firm had reportedly acquired a 75 per cent stake in Ban Labs Pvt. Ltd, the owner of the Sesa Hair Oil brand, for about Rs700 crore. In August, True North had entered into an agreement to acquire Glenmark Pharmaceuticals Ltd’s orthopaedic and pain management business for India and Nepal markets in a deal valued at about $92 million (Rs 635 crore).
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Indian private equity firm True North Capital is said to be looking to exit food ingredients company VKL Seasoning by selling its majority stake.

True North plans to sell its majority stake in VKL Seasoning

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True North plans to sell its majority stake in VKL Seasoning

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