India focused PE firm CX Partner is leading a clutch of investors to acquire 48% in Punjab-based food major, Cremica Food, for a consideration of about R650 Cr ($100 Mn). The investors will buy shares from Motilal Oswal and one of the promoter family siblings. Motilal Oswal, had purchased a 20% stake in the company five years ago. Cremica Foods was formed through the demeger of the Mrs Bector’s Food Specialities, which previously owned Cremica brand of biscuits, bakery and condiments. Prior to the demerger Mrs Bector was controlled by her three sons, Anoop, Akshay and Ajay. However with the demerger, Ajay exited the business, Anoop took over the bakery business, majorly owned by investors (Motilal Oswal PE), and Akshay took over the foods and condiments business as the sole owner. The Akshay Bector led company is now looking at both organic as well as inorganic growth opportunities for expansion. In Jan this year, Cremica Food Industries was planning to tap the PE players to raise close to R150 Cr giving away a minority stake in the company for financing its expansion plans. Cremica is said to be in talks with PE funds including Tata Capital and is seeking a valuation of over R800 Cr.
Source:CX-led Investors To Acquire Stake In Cremica
Industry: Food and beverage 2015-11-23
