E-Paper
Brownie empire sold! Theobroma acquired in ₹2,410 crore deal: Report
In March, the firm resumed talks for acquiring Theobroma at a price lower than Rs. 3,000 crore, which was the original price.
ChrysCapital, a private equity firm focused on investing in India-based companies, has agreed to acquire pan-Indian bakery food chain Theobroma Foods, reported The Economic Times. The deal has been locked for Rs. 2,410 crore.
According to the report, the agreement was signed between both parties, with ChrysCapital agreeing to buy around 90 per cent stake in the company’s existing promoter and investor, ICICI Venture. ICIC Venture holds a 42 per cent stakes in Theobroma and brought the stake in 2017 for $20 million, said the report.
In March, the firm resumed talks for acquiring Theobroma at a price lower than ₹3,000 crore, which was the original price. The discussions then got stalled for a month and only resumed a few months ago, said Economic Times, citing people with knowledge of the matter.
A person directly involved in the developments told Economic Times that even though the deal was signed at a lower valuation, it is being seen as the start of high-value transactions in the dinner and cafes sector in India. “There are half a dozen such transactions and deal negotiations, which are currently stalled, waiting for the market to revive,” the person added.
Also read: The Theobroma story: Sisters behind ₹3,500 crore bakery eye India’s largest cash exit
Theobroma, which today is a bakery chain with 225 outlets across India, was once a one-room enterprise by sisters Kainaz Messman Harchandrai and Tina Messman Wykes 20 years ago. Their first outlet was opened on Dussehra 2004 in Mumbai’s Colaba area. Derived from Greek, ‘theobroma’ means food of the gods.
Despite its growing popularity, Theobroma initially struggled with funding and expansion to maintain quality and cost. It took until 2014 for the founders to secure their first loan, which was ₹5 crore. This loan further helped them grow beyond their single outlet.
The report also states that besides ChrysCapital, other contenders showed interest in Theobroma, including Carlyle, Bain Capital, and the Khorakiwala family-owned Switz Group, which owns the Monginis bakery chain.
