Private equity firm Advent International will buy a controlling stake in Eureka Forbes from Shapoorji Pallonji Group for approximately Rs 4,400 crore, sources said on September 19.
This deal will help Shapoorji Pallonji Group (SP Group) significantly in deleveraging its balance sheet, the sources added.
Earlier on September 9, Moneycontrol had reported that Advent International had emerged as the lead suitor to acquire Eureka Forbes.
On June 28th, 2021, Moneycontrol had reported that three bidders, namely Advent International, Warburg Pincus, and Swedish home appliance maker Electrolux had been shortlisted for the sale process of Eureka Forbes.
Moneycontrol was also the first to report the sale plans of the SP Group on 20th November 2019.
Eureka Forbes is a subsidiary of listed parent Forbes & Company and the 150-year-old Shapoorji Pallonji group is keen to take advantage of the health, hygiene, and home improvement wave post-COVID-19, unlock value and reduce its debt through the proposed transaction. An internal restructuring exercise, involving a demerger of Eureka Forbes from Forbes & Company is also being pursued to facilitate the deal, the September 9 report had said.
Advent’s consumer portfolio in India includes DFM Foods, men’s innerwear brand Dixcy Textiles & Crompton Greaves Consumer Electricals.
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