Private equity firm Advent International Corp and Singapore state fund Temasek Holdings have reached a deal to buy the consumer electricals business of India’s Crompton Greaves Ltd 20 billion rupees ($316 million).
Avantha, the holding company behind Crompton Greaves Ltd and Advent said in a joint statement that the deal will see the private equity players buy 34.37 percent share in Crompton Greaves Consumer Electricals Ltd (CGCEL), while the remaining equity would be listed on the market.
The transaction estimates CGCEL’s enterprise value at 66 billion rupees ($1.04 billion), and Advent and Temasek will also assume debt worth 70 million rupees as part of the deal.
“CGCEL is an attractive business that we believe will thrive as a standalone company,” said Shweta Jalan, managing director at Advent International in Mumbai.
Barclays and HSBC were financial advisors in the deal.
For Advent, this marks its second control deal in India, and its third overall since it started investing in the country in 2007, and prior to this, its last big deal was buying a majority stake in CARE Hospitals chain in 2012.
In the case of Temasek, this marks its second India deal within days. Last week, the Singapore state investment firm had picked up a 3.83% stake in India’s Glenmark Pharmaceuticals Ltd for $151 million, in what was the largest private equity deals in a listed Indian pharma company this year. The deal makes Temasek the single largest institutional investor in Glenmark Pharmaceuticals.
Earlier this month, Temasek Holdings said it had completed its acquisition of SVB India Finance Private Limited and said it had rebranded the company as InnoVen Capital India, with the former chief executive of ICICI Securities (I-Sec) Madhabi Puri Buch as chairperson. Temasek had announced in January that it had reached a deal with SVB India Finance Private Limited, the specialty lending arm of Silicon Valley Bank, for $45 million.