Advent to amass majority stake in Eureka Forbes

Advent International, a worldwide personal fairness investor, has signed a definitive settlement with Shapoorji Pallonji Group (SPG) to amass a majority stake in Eureka Forbes Ltd. The transaction values Eureka Forbes at an enterprise worth of Rs 4,400 crore, topic to closing changes.
As a part of the scheme, Eureka Forbes Ltd, a 100 per cent subsidiary of Forbes & Company, shall be demerged right into a standalone firm after which listed on the BSE. After the itemizing of EFL, US-based Advent will buy as much as 72.56 per cent of the corporate’s then excellent inventory on a completely diluted foundation from SPG. Advent will thereafter make an open provide in compliance with relevant laws. The transaction is topic to closing situations and receipt of related statutory and regulatory approvals.
Eureka Forbes is a pacesetter within the well being and security options area in India, with a presence in water purification via its model Aquaguard, vacuum cleansing (Forbes) and different rising classes. The firm has constructed a multi-channel community with a novel direct gross sales enterprise, robust retail presence in over 20,000 shops, 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,” mentioned Jai Mavani, government 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 mentioned in a press release.
“We look forward to working with Marzin Shroff and his team to guide EFL’s next phase of growth and solidify its market leadership” mentioned Ms. Shweta Jalan, Managing Director, Advent India PE Advisors. In India, Advent has made 4 shopper investments, together with Crompton Greaves Consumer Electricals, a number one provider of shopper electrical items, Dixcy Textiles, a number one males’s innerwear model, Enamor and DFM Foods, a number one producer of packaged savory snacks. Advent has invested $56 billion in over 380 corporations in 42 nations, and as of March 2021, had $75 billion in belongings beneath administration.