‘Largest Private Equity Buyout In India’: Blackstone In Talks With Haldiram’s (image-Instagram/haldirams.official)
Blackstone is in talks with India’s largest family-run snack firm, Haldiram’s, to acquire up to 76 percent of the company, as per reports. The New York-based alternative investment firm has been in talks with the Haldiram Agarwal family over the past few months, according to Moneycontrol.
Along with Blackstone, its partners, Abu Dhabi Investment Authority (ADIA) and Singapore’s GIC, have had rounds of discussions with the Haldiram family. However, the negotiations have been delayed after differences in company valuation emerged, as reported by the Economic Times on May 14.
Read Also: Know About KKR – The American Investment Firm Buying Kozhikode’s Baby Memorial Hospital
Despite that, the discussions have reportedly gained momentum over the past few weeks. Moneycontrol stated that the Agarwal family is not looking at giving away 76 percent of the controlling stake but wants to retain a larger share of the company. Some members of the family wish to sell only 51 percent of the stake, but ongoing discussions with Blackstone suggest that a stake sale of nearly 74 percent is likely.
Last month, a Bloomberg report stated that the Haldiram Agarwal family was considering a potential public listing of the company, valuing it at $8-8.5 billion, after the bids made by private equity investors failed to meet the snack business’ expectations. Apart from Blackstone, Haldiram’s has also received bids from PE firms Bain & Co. and Temasek Holdings, as per the report.
Read Also: Narayana Health Enters Insurance; Offers Affordable Family Premium
If the deal between the New York-based investment firm and Haldiram’s goes through, then it will be India’s largest private equity buyout deal.
In the financial year 2023, Haldiram’s operating income rose 34 percent to Rs 1,812 crore from Rs 1,350 crore in 2022, according to an ICRA report released in December 2023. The Indian company sells namkeen snacks, ready-to-eat food, frozen foods, pre-mixed foods, and sweets in India. The company also exports the products to the United States and Europe.
