Mumbai / Chennai: American Private Equity Firm Advent International approaches an agreement to acquire Eureka Forbes, the largest water purifier maker and vacuum cleaner in India owned by the Shapoorji Pallonji (SP) group.
Transactions are set to appreciate Eureka Forbes at around Rs 5,000 Crore, said people with knowledge about this problem.
SP has appointed Standard Chartered Bank to explore the strategic options for Eureka Forbes, which is underestimated from Forbes & Co.
What is registered in public, Demerger is awaiting approval from the National Company Law.
After this, the consumer equipment unit will be sold to Advent.
When contacted, both Advent and SP offer comments.
The transaction will help SP Pare Debt total Rs 20,000 Crore and sharpen the focus on its core construction business.
Of the total debt, around Rs 12,000 Crore are under the reserve bank backup of the Covid Covid scheme.
This scheme provides SP time to 2023 to clean up contributions, but plan to pay at least half in the coming months.
And Forbes Eureka’s divestment is in that direction.
Besides Eureka Forbes, SP is wanting to sell Sterling & Wilson Solar, AFCONS infrastructure and some real estate assets.
Advent competes with the Warburg Pincus investment company and the Swedish Electrolux house producer to acquire Eureka Forbes.
Both refused to raise their offer, open the way for the agreement to come with arrival.
Interestingly, Eureka Forbes, one of the largest direct sales companies in the world, promoted by Electrolux along with Tata Group in the early 1980s.
Major Sweden came out of the joint venture because it was out of the marketing business directly in several countries.
Adventist Steps Following the Examination of the House Crompton Greaves Electricals Consumer Maker.
Boston-based funds have invested in India since 2007.
At this time, he had mobilized more than $ 1.7 billion in a dozen Indian companies, according to his statement in February.
Eureka Forbes, with footprints in more than 35 countries, has a number of customers of 20 million.
A few years ago, he acquired Lux ​​Switzerland, who helped Eureka Forbes to spread his wings at a foreign location.
This is a leader in the vacuum cleaning category in India and its flagship Aquaiguard brand also has a dominant part of the water purifier market in this country.
Riding a wave of cleanliness and health behind the pandemic, recently launched Forbes Coronaguard, a virus disinfectant device, and a robot vacuum cleaner.