Advent-Temasek consortium buys consumer arm of Crompton Greaves

Consumer Fan visual from the Crompton Greaves

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.

RelatedTemasek to invest $151m in India’s Glenmark Pharma

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.

Also Read: Temasek completes acquisition of SVB India, rebrands it InnoVen

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.