Advent to acquire controlling stake in WestBridge-backed DFM Foods for $118m

Photo: Reuters

US-based private equity firm Advent International is acquiring about 68 per cent stake from promoters and WestBridge Capital in Indian snacks maker DFM Foods for about $118.2 million (Rs 851.67 crores), per an announcement on Monday.

With the sale of shares, DFM’s promoters and WestBridge will fully exit their investments in the company, Advent said in a press statement.

For Advent, this marks the second deal in less than a week. The firm recently also announced an investment of Rs 1,000 crore in Aditya Birla Capital Ltd (ABCL).

Advent, which is routing the deal through Al Global Investments (Cyprus) PCC Limited, has also made an open offer for acquiring an additional 26 per cent stake in DFM Foods at Rs 249.50 per equity share, the Indian company said in a BSE filing on Monday.

Assuming full acceptance of the open offer, the total consideration payable by Advent will be Rs 326.11 crore, the filing added.

DFM Foods was spun off from the Delhi Flour Mills, which was launched by RP Jain in 1993. It sells salted snacks, under the Crax brand, with a strong foothold in North India. The promoters currently hold about 38.27 per cent stake in the company while WestBridge, via two funds, owns about 24.87 per cent.

Meanwhile, Advent International has been investing in India since 2007 and opened its Mumbai office in 2009. Over the past 12 years, the firm has deployed more than $1 billion in several companies with headquarters or operations in India across sectors such as financial services, consumer products, healthcare, industrial and technology.

The firm announced the acquisition of Bengaluru-based packaging solutions company Manjushree Technopack in October last year. The deal paved the way for a full exit for homegrown PE firm Kedaara Capital.

Earlier in June, Advent also reportedly emerged as the sole bidder for Mumbai-based biopharma company Bharat Serums & Vaccines.