Private equity firm Everstone Capital said it will acquire Videocon group's home appliances brand Kenstar.
The deal will involve Everstone Capital buying the Kenstar brand, including assets such as a manufacturing facility, from Videocon group’s associate company Century Appliances Ltd, the PE firm said in a statement.
This is the first PE buyout deal in the consumer durable space after Advent International and Temasek led the buyout of Crompton Greaves in September 2016.
The companies did not reveal the deal size, but media reports previously said Everstone Capital made a bid worth Rs 1,300 crore (around $200 million) for Kenstar.
Everstone is currently investing out of its $730 million third fund.
The PE firm did not clarify if the $200 million investment would be made along with its limited partners.
The PE firm edged out Advent International and Temasek-backed Crompton Greaves in its bid to acquire Kenstar, as previously reported.
The deal will involve the existing management team at Kenstar, led by business head Rajiv Kenue, running the business, the PE firm said.
While the Kenstar business will operate as an independent company and be controlled by Everstone Capital, the PE firm will also have a partnership with the Videocon group “for manufacturing, cooperating on Kenstar and developing products’, it said.
Avnish Mehra, managing director at Everstone Capital, said the PE firm would further invest in Kenstar to strengthen its dealer network, product innovation and brand building.
The Videocon group has had to monetise several assets to pare debt.
Kenstar makes coolers, air conditioners and other home appliances such as mixer grinders, food processors, electric kettles, oxy fryers, microwave ovens, water heaters and ceiling fans.
In its last buyout deal, the PE firm acquired Modern bakery business from Hindustan Unilever. Since then, it has made other investments including backing Omniactive Health Technologies Pvt. Ltd to acquire a controlling stake in Bengaluru-based Indfrag.
Last year, there were a few other transactions in the consumer durables space. For instance, Havells acquired Lloyds for $230 million.
