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Advent International to buy India’s Eureka Forbes at $597m

08:38, 20 September 2021

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A selection of vacuum cleaners in a story
Private equity firm Advent International is buying out Eureka Forbes, India’s largest seller of vacuum-cleaning products – Photo: Shutterstock

Private equity firm Advent International has agreed to buy a majority stake in Indian consumer durables maker Eureka Forbes Ltd at a consideration of INR44bn ($597m), subject to statutory and regulatory approvals.

Eureka Forbes is seen as a market leader in the health and safety space in India. It is the largest seller of water purification and vacuum-cleaning products in India, with a multi-channel network with a direct sales business spread across over 20,000 outlets and an e-commerce channel.

Listing and offer

According to an exchange filing, Eureka Forbes Ltd, a subsidiary of Forbes and Co. Ltd, will be separated from the parent company and listed on the Bombay Stock Exchange. Upon acquiring Forbes’ stake in Eureka Forbes and listing on the bourse, Advent International will make an open offer to meet regulatory compliance.

Jai Mavani, executive director at Shapoorji Pallonji and Company Private Limited, said: “We are pleased that Eureka Forbes Limited, a jewel in the Shapoorji Pallonji Group, has found a new home with Advent while at the same time unlocking value for shareholders.

This transaction also reflects our stated objective and strategy of significant de-leveraging and focusing on our core competencies and businesses.”

Shweta Jalan, managing director at Advent India PE Advisors Private Limited, also commented: “Eureka Forbes Limited is the No. 1 player in an under-penetrated market poised for strong growth over the next several years. Their Aquaguard brand is a household name in water purification, helping safeguard the health and well-being of a large segment of the Indian population.”

Advent’s Indian investment

Since it began investing in India in 2007, with a dedicated office in Mumbai since 2009, Advent International has focused on international investments with Indian expansion opportunities. 

In total, during the past 14 years, Advent has invested $2.2bn in 16 companies in the country, primarily across the Indian consumer products, financial services, healthcare, industrial and technology sectors, the company stated in a press release. 

As at 14:00 IST, shares of Forbesa and Co. were trading 5% higher at INR4,184.35 on India’s National Stock Exchange.

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