US-based Pvt. Equity Firm Advent International Corporation is all set to acquire a controlling stake in home-grown snacks maker DFM Foods Pvt Ltd that owns brands such as Crax & Natkhat.

The stake is being bought from WestBridge Crossover Fund, LLC and its subsidiaries, and certain other individual shareholders. The deal will vary between ₹852 crore and ₹938 crore ($118-130 million) depending on the open offer subscription.

Under the agreements, Advent will purchase up to 34.1 mn DFM shares, representing up to 68%of the company’s outstanding stock on a fully diluted basis, at a price of ₹249.50 per share.

The purpose of the deal will be to provide DFM’s promoters and WestBridge an exit opportunity.

In accordance with the Securities and Exchange Board of India regulations, Advent will make an open offer to DFM’s public shareholders to purchase up to an additional 26% at a price of ₹249.50 per share.

Depending on the open offer subscription, the aggregate consideration for the purchase of shares will vary between ₹852 crore and ₹938 crore. DFM’s shares closed at ₹270 a piece on BSE on Monday.

The transaction, Advent’s seventh investment in India in the past four years, is subject to customary closing conditions and is expected to be completed in 3-4 months.

“The food and beverage market in India is a fragmented, regional industry, and we look forward to working with DFM to build a larger and broader food and beverage business through further organic growth and targeted M&A,” said Sahil Dalal, a Director at Advent in Mumbai.

Meanwhile, AI Global Investments (Cyprus) PCC Ltd is making an open offer at ₹249.50 per equity share to additionally acquire up to 26% of the expanded voting share capital in the company.

J Sagar Associates (JSA) has reportedly advised Advent International led by a team of Partner Vikram Raghani and Partner Anand Lakra, Associate Ami Shah and Associate Khamir Kamdar.

AZB & Partners advised DFM Foods and its promoters while Cyril Amarchand Mangaldas advised Westbridge.

 

 

 

 

 

 

 

 

 

 

 

 

J Sagar Associates advised Advent International led by a team of partners Vikram Raghani and Anand Lakra, associates Ami Shah and Khamir Kamdar.

AZB & Partners advised DFM Foods and its promoters.

Cyril Amarchand Mangaldas advised Westbridge.

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