Private Equity Fund Investments
Advent International to acquire over 72% in Eureka Forbes for Rs.4,400-Cr
Private Equity firm Advent International, via its unit Lunolux Limited, is to buy a controlling stake of 72.56% in Eureka Forbes Limited (EFL) from the Shapoorji Pallonji Group for approximately INR 4,400 crore. EFL, which operates in the direct sales of health and safety products in the water purification (under the brand Aquaguard), vacuum cleaning and other categories. For FY 21, the turnover of EFL was INR 1786.27 crore. The networth was a negative INR 141.48 crore. Pursuant to a scheme of arrangement, Eureka Forbes Limited, a 100% subsidiary of publicly listed Forbes & Company Limited, will be demerged into a standalone company and then be listed on the BSE Limited. Upon listing of EFL, Advent will purchase up to 72.56% 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. Standard Chartered Bank is serving as sole financial advisor, Desai & Diwanji is acting as legal counsel, Katalyst Advisors Pvt Ltd is acting as structuring and tax advisor, Boston Consulting Group is acting as the commercial due diligence and strategic advisor and KPMG India is acting as financial diligence advisors to the sellers.
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