Everstone Group agrees to buy Kenstar from Videocon associate firm
Mumbai: Private equity firm Everstone Group has agreed to acquire Kenstar, a brand of air coolers, air conditioners and other home appliances, from Century Appliances Ltd, an associate of the Videocon Group.
The proposed sale, subject to statutory approvals and specific clearances, includes the purchase and transfer of the Kenstar brand and businesses under the brand on a going concern basis, including a state-of-the-art manufacturing facility, as well as assets, Everstone said in a statement on Monday. It did not disclose financials details of the transaction.
Everstone, focussed on India and Southeast Asia, has assets under management of approximately $4 billion and offices in Singapore, Mumbai, Delhi, Bengaluru, Mauritius and London.
Under the agreement, the existing management team at Kenstar, led by business head Rajiv Kenue, will continue to manage the business.
The business will be strengthened significantly by the operational capabilities—the various resources that Everstone will put in the company to manage it, including operational capabilities of the Everstone group, which being a buy-out focused private equity fund, has operating partners and executives that help its portfolio companies—along with additional resources and financial investments of the Everstone Group.
“Everstone looks forward to significantly investing in the Kenstar brand and leveraging our operating expertise to unlock its true potential by strengthening the dealer network, supporting product innovation, and investing in brand building,” said Avnish Mehra, managing director of Everstone.
As part of the deal, Everstone will also enter into a strategic alliance with Videocon group, among others, for manufacturing, cooperation on Kenstar brand, and developing new products.
“We believe Everstone is the perfect partner for Kenstar with the right mix of financial resources and operating expertise to rapidly grow the latent potential of the Kenstar business,” said Anirudh Dhoot, director, Century Appliances Ltd.
Kenstar is a market-leading brand of air coolers, with No. 1 or strong No. 2 positions in most regions in India, and a national No. 2 share, according to the statement.
“Kenstar also has a significant and growing presence in air conditioners and a broad range of home appliances such as mixer grinders, juicer mixer grinders, food processors, electric kettles, oxy fryers, microwave ovens, water heaters, and smart ceiling fans,” it added.
The deal is yet another instance of the PE firm carving out a business from a large conglomerate.
In April 2016, Everstone acquired Hindustan Unilever Ltd’s bread and bakery division under the brand Modern in April 2016. Everstone has also built from scratch businesses such as Burger King’s India franchise.
Everstone Group currently has a portfolio of over 30 companies, with a combined revenue of more than Rs12,000 crore.
Everstone’s investments in the consumer sector includes companies such as Modern Foods, Ritu Kumar, S Chand Group, Ozone, Burger King India, Burger King Indonesia, Domino’s Indonesia, and several marque restaurant brands.
- Jagan Mohan Reddy-led YSRCP to conduct ‘Walk with Jaganna’ in Andhra Pradesh
- Acer Aspire 5 Review: One of the first to adopt the newest Intel chips
- ‘Padmaavat’ protests: 50 supporters of Karni Sena detained in Mumbai
- Google, Tencent, Sequoia China join $15 million funding for pharma start-up XtalPi
- WEF Davos 2018: Donald Trump to meet Theresa May, Benjamin Netanyahu, other world leaders