Blackstone Inc., a significant player in the private equity sector, is nearing a deal to acquire a controlling stake in Haldiram's, the renowned Indian snacks and savouries company. The potential deal could value Haldiram's at up to Rs 70,000 crore, according to a report by Moneycontrol.
The discussions involve Blackstone and its consortium partners, Abu Dhabi Investment Authority and Singapore's GIC, which support Blackstone's global funds. They have been in negotiations for several months with the Agrawal family members, based in Delhi and Nagpur. Initial disagreements over the business's valuation had stalled the talks, but the negotiations have recently regained momentum, the report said.
Sources indicate that the Blackstone consortium aims to acquire up to a 76 per cent stake in Haldiram's. "There has been a lot of back and forth with the family members over the valuation of the business. Also, the family is not looking at giving away a 76 per cent controlling stake, which the private equity investors wanted, and want to retain a larger share of the business. Some family members would like to sell only a 51 per cent stake but the current discussions with Blackstone are likely to see a stake sale of closer to 74 per cent," said a source.
If finalised, this acquisition would be the largest private equity buyout in India's history. However, sources caution that the deal could still fall through, and the Haldiram's promoters might consider alternative options, including taking the company public.
As part of their strategic consolidation, the Agrawal family's Delhi and Nagpur branches are merging their FMCG businesses — Haldiram Snacks Private Limited and Haldiram Foods International Private Limited — into a new entity, Haldiram Snack Foods Private Limited. In this new structure, the Delhi branch will hold a 56 per cent stake, while the Nagpur branch will own 44 per cent. The merger has received approval from the Competition Commission of India and is expected to be completed in the coming months.
In a related development, Bloomberg reported last month that the Agrawal family is contemplating an initial public offering (IPO) for their business. This consideration follows private equity bids valuing the company between $8 billion and $8.5 billion, falling short of the family's $12 billion valuation expectation. Apart from Blackstone, Haldiram's has also received bids from Bain & Company and Temasek Holdings.