ChrysCapital is set to acquire around 90 per cent stake from the promoters of the company and the existing investor, ICICI Venture
ChrysCapital, a private equity firm, is set to acquire a 90 per cent stake in the bakery chain Theobroma Foods for Rs 2,410 crore, as per media reports. An agreement has been signed between the parties, the reports noted.
ChrysCapital will be buying around 90 per cent stake from the promoters of the company and the existing investor, ICICI Venture. The reports highlighted that the promoters will be retaining around 10 per cent holding in the company.
The reports emphasised that ICICI Venture, which invested around Rs 300 million in the company in 2021, is expected to earn a return of around three times its investment. The deal has been finalised at a valuation lower than the earlier discussion. This is attributed to subdued financial figures, as per the reports.
The development signals a positive sign for large-scale deals in the dining and quick service restaurant (QSR) space. The reports added that many deals in the sector are stalled and are looking for more favourable market conditions.
As far as the current deal is concerned, Theobroma had also drawn early interest from other suitors as well. This involves Blackstone, Carlyle and Switz Group. The transaction was advised by Arpwood Capital on behalf of the promoters, the reports added.
