Updated: September 20, 2021 10:17:52 am
Advent International, a global private equity investor, has signed a definitive agreement with Shapoorji Pallonji Group (SPG) to acquire a majority stake in Eureka Forbes Ltd. The transaction values Eureka Forbes at an enterprise value of Rs 4,400 crore, subject to closing adjustments.
As part of the scheme, Eureka Forbes Ltd, a 100 per cent subsidiary of Forbes & Company, will be demerged into a standalone company and then listed on the BSE. After the listing of EFL, US-based Advent will purchase up to 72.56 per cent of the company’s then outstanding stock on a fully diluted basis from SPG. Advent will thereafter make an open offer in compliance with applicable regulations. The transaction is subject to closing conditions and receipt of relevant statutory and regulatory approvals.
Eureka Forbes is a leader in the health and safety solutions space in India, with a presence in water purification through its brand Aquaguard, vacuum cleaning (Forbes) and other emerging categories. The company has built a multi-channel network with a unique direct sales business, strong retail presence in over 20,000 outlets, and a fast-growing e-commerce channel.
“This transaction also reflects our stated objective and strategy of significant de-leveraging and focusing on our core competencies and businesses. We firmly believe they (employees) will benefit from this transaction,” said Jai Mavani, executive director, Shapoorji Pallonji and Company.
“Over the past 14 years, Advent has invested or committed $2.2 billion in 16 companies with headquarters or operations in India across sectors such as consumer products, financial services, healthcare, industrial and technology. Advent also has significant investment experience in the retail, consumer, and leisure sector,” it said in a statement.
“We look forward to working with Marzin Shroff and his team to guide EFL’s next phase of growth and solidify its market leadership” said Ms. Shweta Jalan, Managing Director, Advent India PE Advisors. In India, Advent has made four consumer investments, including Crompton Greaves Consumer Electricals, a leading supplier of consumer electrical goods, Dixcy Textiles, a leading men’s innerwear brand, Enamor and DFM Foods, a leading producer of packaged savory snacks. Advent has invested $56 billion in over 380 firms in 42 countries, and as of March 2021, had $75 billion in assets under management.
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