PE firm True North buys Sesa Oil for Rs. 1250 crore
NEW DELHI: India-focused PE firm True North has acquired controlling stake in Ayurveda-based hair oil maker Sesa Oil for Rs. 1250 crore, according to people briefed on the matter.
The PE firm will own 74% stake in a new entity called Sesa Care that was carved out from a parent company that also owns detergent brands.
Sesa Oil’s founder, Gujarat-based Mualesh Ukani, will own the remaining stake in the newly created entity along with the PE firm.
“We see great potential in the consumer sector and strongly believe Sesa Oil is a remarkable addition to our consumer portfolio”, True North’s partner, Srikrishna Dwaram said.
The home-grown PE firm that started operations nearly two decades ago has made $2.8 billion worth of investments in diverse sectors such as hospitals, financial services, broadband internet and restaurants.
Hair oil manufacturers have been regular acquisition targets for FMCG companies in the past few years.
Kolkata-based Emami acquired hair oil brand Kesh King three years ago for around Rs. 1600 crore. Emami is said to have paid five times the value of Kesh Kings annual sales at the time as consideration for the purchase.
Similarly, Hindustan Unilever acquired the Indulekha brand of hair oils from a Kerala-based company around the same time.
Law firms JSA and Veritas Legal were advisers to Sesa Oil and True North respectively. Deloitte, which had previously advised on the sale of the Kesh King brand was also the financial adviser to Sesa Oil’s founders.
The PE firm will own 74% stake in a new entity called Sesa Care that was carved out from a parent company that also owns detergent brands.
Sesa Oil’s founder, Gujarat-based Mualesh Ukani, will own the remaining stake in the newly created entity along with the PE firm.
“We see great potential in the consumer sector and strongly believe Sesa Oil is a remarkable addition to our consumer portfolio”, True North’s partner, Srikrishna Dwaram said.
The home-grown PE firm that started operations nearly two decades ago has made $2.8 billion worth of investments in diverse sectors such as hospitals, financial services, broadband internet and restaurants.
Hair oil manufacturers have been regular acquisition targets for FMCG companies in the past few years.
Kolkata-based Emami acquired hair oil brand Kesh King three years ago for around Rs. 1600 crore. Emami is said to have paid five times the value of Kesh Kings annual sales at the time as consideration for the purchase.
Similarly, Hindustan Unilever acquired the Indulekha brand of hair oils from a Kerala-based company around the same time.
Law firms JSA and Veritas Legal were advisers to Sesa Oil and True North respectively. Deloitte, which had previously advised on the sale of the Kesh King brand was also the financial adviser to Sesa Oil’s founders.
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