Convergent Finance, an investment advisor to Infinity Investment Management, announced an investment, up to Rs 180 crore (US $23.8 million) in Camlin Fine Sciences, a vertically integrated company engaged in the manufacturing of antioxidants and aroma chemicals supplying the food industry globally.
Structured as a subscription to equity warrants priced based on the prevailing market price and following applicable Securities and Exchange Board of India (SEBI) regulations, the investment will aggregate up to Rs 180 crore (US $ 23.8 million). It will result in an approximately 22.65% ownership stake on a fully diluted basis, the company mentioned in a press release.
Camlin is well-positioned as an alternate supplier
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. Camlin is a leading producer of antioxidants and is also the world’s third-largest producer of vanillin. Camlin has manufacturing plants in India, Italy, Mexico, China, and Brazil with R&D centers in India and Italy and application labs in India, Mexico, Brazil, USA and Italy. The company 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, commented, “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 transform them into global leaders, Camlin will benefit from our network of relationships, strategic insights, and operational expertise.”
Ashish Dandekar, managing director of Camlin, welcomed this investment by saying, “This investment is a vote of endorsement for Camlin, and a reflection of the extraordinary transformation underway within our company. Given our merger and acquisition-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.”