The owners of DFM Foods, the India-based snacks business, have sold a majority stake in the firm to US private-equity firm Advent International.
Advent is to buy up to 68% of publicly-listed DFM from its promoters, as well as WestBridge Capital and its subsidiaries and other individual shareholders. Boston-based Advent will purchase up to 34.1m DFM shares.
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The private-equity house said it will subsequently make an open offer to acquire up to an additional 26% of Delhi-headquartered DFM Foods’ shares from public shareholders.
Depending on the open offer subscription, its total outlay will vary between INR852 crore and INR938 crore (US$118m to $130m).
With the sale of shares, DFM’s promoters and WestBridge will fully exit their investments in the company.
DFM, a manufacturer, marketer and distributor of packaged snack foods in India, selling products under the Crax, Natkhat and Fritts brand names, becomes Advent’s seventh investment in India in the past four years. The deal is expected to be completed in three to four months’ time.
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By GlobalDataWith manufacturing facilities in Ghaziabad and Greater Noida, DFM sells its products through a distribution network spanning the whole of India.
Shweta Jalan, a managing director and head of India at Advent International, said: “DFM is a leader and innovator in a large, fast-growing segment of the Indian food and beverage industry. The company has strong brand awareness and distribution and numerous opportunities for continued growth. We are excited to partner with DFM to help drive its next phase of expansion.”
Advent said it plans to work with DFM to “build a larger and broader food and beverage business through further organic growth and targeted M&A”.
Mohit Jain, chairman and managing director of DFM Foods, said: “Over the past 35 years, we have established a position as one of India’s leading snack food providers, bringing excitement to people’s lives through our innovative, high-quality snacks and brands. We appreciate the support we have received from WestBridge Capital in expanding the company over the past five years and welcome Advent International as DFM’s new majority shareholder to help drive continued growth and consolidate the business in the future.”
