Acquisition of botanical extract businesses for a PE-backed Indian ingredients platform
Buyer overview (confidential)
- PE-backed Indian maker of plant-extract ingredients for global nutraceutical and wellness brands
- Revenue: ~US$52M in FY26 (₹500 cr), up from ~US$37M the year before
- EBITDA margin: 22–23%
- Exports: ~80% of sales: US, Europe, Korea, Japan, Australia/NZ
- Portfolio: 60–70 core ingredients, refined to up to 99% purity
- US presence: New Jersey, California, Texas
- Funding: large new round being raised to fund acquisitions; listing planned
Acquisition rationale
- Get access to customers and a local presence in the respective geography
- Buy stable businesses and combine them with its own
Target criteria
- Business: botanical and plant-extract ingredient makers (preferred), or ingredient distributors (US only)
- Geography: US (any region), Europe (e.g. Spain, France) and Australia/NZ preferred; other regions also considered
- Revenue: US$5–50M
- Profitability: must be profitable; no minimum EBITDA margin
- Customer concentration: ideally no single customer above 20–25% of revenue
- Ingredients: open to all; specialty or unique ingredients is a plus (e.g. lutein from marigold, ashwagandha, rosemary, pistachio)
- Number of deals: open to more than one acquisition
Exclusions
- Loss-making businesses or turnarounds
- Technology or pre-revenue companies