Advent agrees to acquire majority stake in India’s DFM Foods

Global private equity investment firm Advent International has signed a definitive agreement to acquire up to 68% in Indian packaged snack food manufacturer and distributor DFM Foods.

Advent will acquire the stake in DFM from its promoters, WestBridge Crossover Fund, as well as individual stakeholders.

The deal is expected to vary between Rs8.52bn and Rs9.38bn ($118m and $130m) depending on the open offer subscription.

Advent will purchase 34.1 million DFM shares by paying Rs249.50 ($3.48) per share.

By divesting the stake in the company, WestBridge and promoters will fully exit their investments in DFM.

DFM Foods chairman and managing director Mohit Jain said: “Over the past 35 years, we have established a position as one of India’s leading snack food providers, bringing excitement to people’s lives through our innovative, high-quality snacks and brands.

“We appreciate the support we have received from WestBridge Capital in expanding the company over the past five years and welcome Advent International as DFM’s new majority shareholder to help drive continued growth and consolidate the business in the future.”

DFM offers a wide range of snack products, including corn rings, corn puffs, wheat puffs and crispy sticks under various brands such as Crax, Curls, Natkhat and Fritts.

Additionally, the company offers savoury snack foods including bhujiyas, daals and nut mixes in a variety of pack sizes.

With manufacturing facilities located in the Indian state of Uttar Pradesh, DFM sells its products across the country through an extensive distribution network.

Advent also intends to make an open offer to DFM’s public stakeholders to acquire an additional 26% stake at Rs249.50 ($3.48) per share. The offer would be in accordance with the Securities and Exchange Board of India (SEBI) regulations.

Completion of the deal is subject to customary closing conditions and is expected to take place in the next three to four months. It would be Advent’s seventh investment in India in the past four years.