Advent International, a global private equity company, has revealed plans to purchase a controlling stake of 72.56% in Eureka Forbes from Indian conglomerate Shapoorji Pallonji Group for about $596 Million (Rs 4,400 crore).
According to an official statement, Eureka Forbes will be registered on the BSE (Bombay Shares Exchange) under the planned agreement, following which Advent will buy up to 72.56% of the company's outstanding stock on a completely diluted basis from SPG.
The transaction will mark as Advent's 5th consumer buyout in India. Whereas Shapoorji Pallonji Group (SPG) is likely to benefit from the acquisition by considerably deleveraging its balance sheet.
Recently, the news of Advent International planning to acquire Eureka Forbes was hinted by credible sources. It stated that in June 2021, Advent International, Warburg Pincus, and Swedish home appliance maker Electrolux were shortlisted as the three bidders for the Eureka Forbes sale process.
Shweta Jalan, Managing Director & Head of Advent International (India), stated that the Aquaguard brand is the leader in the underdeveloped sector and is set for significant development in the coming years.
She added that the firm is a household name in the water filtration industry, helping to protect the health and well-being of a huge part of the Indian consumer base.
Jai Mavani, Executive Director of Shapoorji Pallonji and Company Pvt Ltd, says that this acquisition reflects the company's long-term goal and plan of significantly deleveraging and focusing on the core capabilities and businesses.
Eureka Forbes is a unit of Forbes & Company. The 150-year-old Shapoorji Pallonji company is determined to leverage the post-COVID-19 health, hygiene, and home renovation wave, unlock value and decrease debt through the proposed acquisition.
As Eureka Forbes' new controlling firm, Advent has a large consumer portfolio in India, including DFM Foods, Dixcy Textiles, and Crompton Greaves Consumer Electricals. The company has invested or pledged $2.2 billion in 16 firms with headquarters or activities in the nation during the past 14 years.