Theobroma set for ownership change as ChrysCapital nears 90% stake buy

Aqua Investments, Infinity Partners, and Atreides Investments BV seek CCI approval to acquire stake in Theobroma; deal part of ChrysCapital's planned ₹2,410 crore majority buyout

Three private equity firms — Aqua Investments Ltd, Infinity Partners, and Atreides Investments BV — have approached the Competition Commission of India (CCI) to acquire a stake in Mumbai-based bakery chain Theobroma Foods, according to a PTI report. Infinity Partners and Atreides Investments are affiliated with ChrysCapital.

 

The development comes amid reports that ChrysCapital is set to acquire a 90 per cent stake in Theobroma for approximately ₹2,410 crore. The deal involves purchasing shares from both the company’s promoters and current investor ICICI Venture. However, the founding family is expected to retain a 10 per cent stake post-transaction.

 

Theobroma stake sale: Details of CCI filing

 

In their submission to the CCI, the three firms stated: “The proposed transaction pertains to the acquisition by the acquirers (Aqua Investments Ltd, Infinity Partners, and Atreides Investments BV) collectively, of certain equity shareholding of Theobroma.”

 

 

Theobroma operates in the bakery and confectionery segment, offering products through patisseries and retail outlets across more than 30 Indian cities. It also distributes via its online platform and through third-party e-commerce channels.

 

The applicants noted that there is no direct operational overlap between their existing businesses and Theobroma. “The parties... do not have any direct horizontal overlaps, vertical or complementary relationships. One of the affiliates of the group to which the acquirers belong is engaged in the market for the provision of logistics services in India,” the filing said.

 

While a minor vertical linkage exists between the logistics arm and Theobroma’s food services, the transaction is not anticipated to cause any “appreciable adverse effect on competition in India,” the PE firms added.  ALSO READ | Cinepolis bets on blockbusters to drive double-digit India revenue growth

ICICI Venture’s exit

 

ICICI Venture, which invested around $20 million in Theobroma in 2017, currently owns close to 42 per cent of the company. The current deal will result in its full exit from the business.

 

Theobroma was founded in Mumbai in 2004 by Kainaz Messman, a former pastry chef at Oberoi Hotels. It began as a single-store bakery and has since grown into a nationwide chain of 194 outlets known for its signature brownies, cookies, crackers, pastries, and sandwiches.

 

Before the Covid-19 pandemic, Theobroma operated just 50 stores, primarily in Mumbai and Delhi. Since then, it has significantly scaled its presence across cities such as Pune, Hyderabad, Bengaluru, Chandigarh-Mohali, Chennai, and Surat.