Bain Capital has partnered with Singapore’s Temasek to rival a Blackstone-led consortium in the bid for a controlling stake in Haldiram Snacks Food Pvt Ltd. This competition among major buyout funds could lead to the largest private equity acquisition in India’s history.
Late last week, the Bain Capital and Temasek partnership submitted a non-binding offer, valuing India’s largest snack and convenience foods company at $8-8.5 billion (INR 66,400-70,500 crore). Initially, they had engaged separately with the founding family of the 87-year-old brand, according to sources familiar with the matter.
Snackfax had reported on May 14 that Blackstone, the world’s largest private equity fund, had partnered with the Abu Dhabi Investment Authority (ADIA) and Singapore’s sovereign wealth fund GIC to bid for up to a 76% stake in the company.
Continue Exploring: Blackstone-led consortium eyes $8.5 Billion stake in Haldiram snacks, setting stage for India’s largest PE buyout yet
Temasek, like ADIA and GIC, serves as a limited partner in Bain’s global funds. In November of last year, Bain achieved the final close of its fifth pan-Asia private equity fund at $7.1 billion, surpassing its target by 40%, marking its largest fund for the region to date.
Over the past seven months, Bain has been intermittently engaged in bilateral discussions with both the Nagpur and Delhi factions of the Agarwal family, who oversee Haldiram, as the group finalized a comprehensive pan-India restructuring plan. Initially centered around a minority investment, these discussions intensified towards the end of 2023, accompanied by factory visits and management meetings. However, the founding family has now expressed willingness to divest a majority stake, following the merger of its snacks business and the establishment of a separate company for its restaurant chain, which it intends to retain. The next generation of the Agarwal family is eager to explore alternative pursuits.
Both the suitors and the Haldiram family are aiming to synchronize the transaction with the anticipated National Company Law Tribunal (NCLT) approved merger, projected to occur within the next three to four months. The Competition Commission of India (CCI) granted approval to the merger plan last April.
Depending on the ultimate stake available and valuation, Bain might enlist additional limited partners (LPs) and collaborators to create larger consortiums, a strategy Blackstone may also pursue. “However, both parties are adamant about seeking a shift in management control,” stated one of the individuals mentioned.
This marks the inaugural collaboration between Bain and Temasek on a deal in India. Previously, Bain has frequently partnered with GIC for co-investments.
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Bain and Temasek refrained from providing comments.
Haldiram CEO KK Chutani stated, “The company has no comments to provide at this time.”
Chutani, previously serving as the chief executive of Dabur International, assumed the role of CEO at Haldiram last summer, marking the first time a professional has taken the helm of the company.
People familiar with the transaction, speaking on the condition of anonymity, cautioned that the submission of non-binding bids does not guarantee successful final negotiations.
Mint reported first on May 7 that Bain and Temasek are competing to buy a majority stake in Haldiram Snacks.
“The primary challenge in this transaction lies in the scale and the premium expectation set by the Agarwal family,” remarked a private equity executive who had assessed the deal but opted not to proceed.
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