Private equity AI Corp to acquire 68 pc of stake in DFM Foods

Private equity firm Advent International (AI) Corporation has inked a deal with promoters of Indian snacks maker DFM Foods to acquire 67.9 per cent of their stake for about Rs 851.6 crore in an all-cash deal.

The promoters hold 75.6 per cent stake in the company. AI Global also made an open offer to buy up to 26 per cent from the company's public shareholders at a price of Rs 249.50 per share.

"Al Global Investment's is making an open offer to acquire up to 34,134,935 equity shares constituting 68.12 per cent of the paid-up share capital and 67.9 per cent of the expanded voting share capital. The purchaser has the right to appoint the directors on the board of the company upon closing of the transactions as per the terms of the share purchasing agreement," the company said in a statement.

AI Corp has also signed a purchase pact with WestBridge Crossover Fund LLC, Aravali Investment Holdings and Jwalamukhi Investment Holdings to acquire 12,460,585 shares, constituting 24.87 per cent of the paid-up share capital and 24.79 per cent of the expanded voting share capital.

Last week, the PE firm agreed to invest Rs 1,000 crore in non-bank lender Aditya Birla Capital Ltd along with Premji Invest.

Advent has significant investment experience in the retail, consumer and leisure sector, according to reports. In the past 29 years, the firm has invested more than 11 billion in over 75 companies in the sector worldwide.

DFM Foods has manufacturing facilities in Ghaziabad and Greater Noida in the Delhi NCR region and sells its products through a robust countrywide distribution network.