Advent International Buys Majority Stake In Eureka Forbes For EV Of Rs 4,400 Crore

Over the past 14 years, Advent has invested or committed $2.2 billion in 16 companies with headquarters or operations in India.

Mumbai: Global private equity firm Advent International has signed a definitive agreement with Shapoorji Pallonji Group (SPG) to acquire a majority stake in health and safety solutions firm Eureka Forbes Limited (EFL) at an enterprise value of Rs 4,400 crore, subject to closing agreements.

As per the deal, EFL, a 100% subsidiary of Forbes & Company Limited, will be demerged into a standalone company and 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.

Commenting on the deal, Mr. Jai Mavani, Executive Director, Shapoorji Pallonji and Company Private Limited, said, "We are pleased that Eureka Forbes Limited, a jewel in the Shapoorji Pallonji Group, has found a new home with Advent while at the same time unlocking value for shareholders. This transaction also reflects our stated objective and strategy of significant de-leveraging and focusing on our core competencies and businesses. We thank the EFL family of employees and stakeholders and firmly believe they will benefit from this transaction."

Eureka Forbes, a market leader in India's health and safety solutions space, with a presence in water purification, vacuum cleaning, and other emerging categories under the Shapoorji Pallonji umbrella, has grown to become over the last two decades one of India's most admired organizations.

 "Eureka Forbes Limited is the No. 1 player in an under-penetrated market poised for strong growth over the next several years. Their Aquaguard brand is a household name in water purification, helping safeguard the health and well-being of a large segment of the Indian population. We look forward to working with Marzin Shroff and his team to guide EFL's next phase of growth and solidify its market leadership," said Ms. Shweta Jalan, Managing Director, Advent India PE Advisors Private Limited.

The transaction is subject to closing conditions and receipt of relevant statutory and regulatory approvals.  The Company has built a multi-channel network with a direct sales business, a strong retail presence in over 20,000 outlets, and a fast-growing e-commerce channel. According to a company statement, EFL has one of the largest and most robust pan-India service networks, with an installed base of over 20 million customers visiting a kitchen every second.

EFL has earned the trust of its customers through its long-established power brands such as Aquaguard, which is synonymous with the water purifier category, and Forbes, known for its 'Make for India' range of vacuum cleaners.

Advent has been investing in India since 2007 and opened its Mumbai office in 2009. Over the past 14 years, the firm has invested or committed $2.2 billion in 16 companies with headquarters or operations in India across consumer products, financial services, healthcare, industrial, and technology sectors. Eureka Forbes Limited will be Advent's fifth buy-out in the consumer sector, strengthening its position as one of India's leading retail and consumer investors.