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Carlyle Buys Majority Stake In VLCC In $300 Million Deal: Report

The investment will underscore Carlyle’s overall conviction in India’s long-term economic and domestic consumption story

Carlyle Buys Majority Stake In VLCC In $300 Million Deal: Report
POSTED ON January 11, 2023 11:35 AM

Private-equity firm Carlyle Group (CG.O) has acquired a majority stake in Indian beauty care and wellness solutions provider VLCC for around $ 300 million, Reuters reported.

The equity for the transaction will reportedly come from funds managed and advised by entities affiliated with Carlyle Asia Partners.

The acquisition is said to mark an entry of the private-equity firm into a rapidly growing sector where direct-to-consumer (D2C) brands have mushroomed.

Details of the transaction were not disclosed.

Carlyle has reportedly bought 65-70 per for Rs 2,255 to 2,460 crore ($275 to 300 million) through a primary infusion as well as a secondary purchase of shares from the Luthra family.

Founded in 1989 by Vandana and Mukesh Luthra, the family owned 95 per cent of the company, with employees owning the residual 5 per cent. Post the development, they will hold a significant minority stake in the company, ET reported.

VLCC operates in the skincare, beauty and wellness segments offering services like weight management, skincare packages and more. It has a network of 210 retail clinics in 118 cities in 11 countries across South Asia, the Middle East and Africa.

The company reportedly operates 100 skill development institutes in India.

“The investment underscores Carlyle’s overall conviction in India’s long-term economic and domestic consumption story,” said Amit Jain, co-head, Carlyle India Advisors in a media statement.

Carlyle will help VLCC accelerate growth with investment in strengthening the brand, product expansion and building on its national digital and e-commerce network,” he added.

Going forward, VLCC will appoint Gurveen Singh and J Suresh as independent directors to the board. Singh retired as chief human resources officer (CHRO) from the healthcare company Reckitt Benckiser and Suresh is a retired managing director (MD) of Arvind Fashions.

“The investment by one of the world’s largest global investment firms that have built a stellar reputation for creating long-term value for companies, shareholders, people and communities — is a reaffirmation of the strength of the VLCC brand that we have nurtured, built and grown over the last three decades,” said VLCC chairman Mukesh Luthra. 

KPMG India was the exclusive transaction adviser to VLCC and the founders.

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