[Funding alert] Convergent Finance invests $23.8M in Camlin Fine Sciences
The deal is structured as a subscription to equity warrants and will result in an approximately 22.65 percent ownership stake on a fully diluted basis.
Convergent Finance LLP, the private equity firm launched by former Fairfax India executive Harsha Raghavan, on Thursday announced that it is investing upto $23.8 million (Rs 180 crore) inLimited, a vertically integrated company engaged in the manufacturing of antioxidants and aroma chemicals supplied to the food industry globally.
Convergent Finance, through its entity Infinity Investment Management, will pick up approximately 22.65 percent stake in the Mumbai-based company.
Ashish Dandekar, MD of Camlin, said that this investment is a vote of endorsement for Camlin, and a reflection of the extraordinary transformation underway within the company.
“Given our M&A oriented strategy, this investment and the partnership that it brings with Convergent will enable us to leverage Convergent’s deep global expertise and relationships while benefiting from their strategic guidance,” Ashish further added.
With over 30 years of experience, Camlin is engaged in the research, development, manufacturing, and marketing of specialty chemicals and blends, which are used for many applications in the food industry and beyond. It has manufacturing facilities in India, Italy, Mexico, China, and Brazil with R&D centres in India and Italy, and application labs in India, Mexico, Brazil, the US, and Italy. The company claims that it serves customers in more than 80 countries across the globe with more than 100 products and over 1,000 satisfied customers.
Harsha Raghavan, Managing Partner at Convergent, stated,
“Camlin is well-positioned to benefit from the current supply-chain disruption and the overall shift towards moving manufacturing away from China to other cost-efficient locations including India.”
“Given our track record of working with great platform companies to help transform them into global leaders, Camlin will benefit from our network of relationships, strategic insights, and operational expertise,” Harsha said.
This month, Convergent also invested Rs 107 crore ($14.1 million) in Jyoti International Foods Pvt Ltd, a supply chain solutions provider for the food services industry. In 2019, it also backed Hindustan Foods Ltd, a contract manufacturer for PepsiCo’s Kurkure brand of snacks, with $22 million (Rs 154 crore) funding.
Edited by Kanishk Singh