OmniActive receives TA Associates investment to accelerate global growth
12 Jan 2021 --- Private equity firm TA Associates has acquired a significant stake in natural nutraceutical ingredients supplier OmniActive Health Technologies. The financial terms of the transaction have not been disclosed.
OmniActive intends to leverage its management capabilities and TA Associate’s distinctive mergers and acquisitions (M&A)-sourcing engine to drive programmatic M&A and in-licensing.
“TA will support OmniActive financially and strategically, with the goal of taking OmniActive to the next level of profitability through continued organic growth, as well as inorganically through strategic acquisitions,” Sanjaya Mariwala, founder, executive chairperson and managing director at OmniActive, tells NutritionInsight.
OmniActive Health Technologies, Everstone and other selling shareholders were advised by Investec (the sole financial advisor), DSK Legal and KPMG.
TA Associates was advised by Houlihan Lokey USA, Shardul Amarchand Mangaldas and PriceWaterhouseCoopers.
There will be no material change for OmniActive's customers, Mariwala adds. The investment by TA, however, positions OmniActive as a stronger partner for its customers.
Moreover, the India-based company plans to invest more in innovation and science to help customers succeed in the market place.
OmniActive looks to benefit from TA Associates’ “deep capabilities and experience” investing in companies focused on nutritional ingredients.Activities in nutraceuticals
TA Associates affirms its investment is motivated by the strong growth predicted in the nutritional ingredients space over the next decade.
Simultaneously, OmniActive views TA Associates’ global healthcare experiences as “valuable” in supporting its continued organic growth and strategic acquisitions.
OmniActive has demonstrated “strong growth” with its nutritional products portfolio targeting the active wellness, metabolic health, daily energy and eye health segments.
For example, in 2019, the company was granted Foods with Functional Claims (FFC) approval for its Lutemax 2020 Lutein and Zeaxanthin Isomers in Japan.
As a naturally-derived marigold extract, Lutemax 2020 can claim to improve eye health and visual performance to reduce eye fatigue and support sleep quality.
Also in 2019, TA Associates was a minority partner of Solabia Group, which acquired microalgae cultivating company Algatech.
The pandemic’s toll
In May, NutritionInsight spoke with OmniActive about how its business was affected by the government-imposed lockdown restrictions.
At the time, Brian Appell, director of global communications, said that there hadn’t been “a single area” in OmniActive’s business operations that wasn’t affected by the pandemic.
Amid the initial COVID-19 outbreak last year, OmniActive began providing meals for daily-wage laborers through Rotary clubs, funding rations for village councils near plants and providing farming communities with soap and education related to COVID-19.
The company says it is also ensuring its supply chain remains intact, with its facilities running on strict social distancing and hygiene controls.
OmniActive has R&D and manufacturing operations in Pune, Hosur and Thane in India, and sales and distribution operations in the US, Europe, India, Australia and Latin America.
By Anni Schleicher
