New York-based alternative investment firm Blackstone has reportedly set its sights on acquiring a 20% stake in Haldiram’s, the Indian multinational renowned for its snacks, sweets, and restaurant chain which is currently valued at $8 billion. The potential deal was disclosed through a report by Reuters.
London-based global business intelligence firm Euromonitor International estimates that Haldiram’s commands nearly 13% of India’s $6.2 billion savory snacks market. The company also operates over 150 restaurants, making it a prominent player in the food industry – attracting global private equity investors, including Boston-based Bain Capital, Singapore’s Temasek Holdings, and UAE’s Abu Dhabi Investment Authority (ADIA).
As reported by Reuters in May, Blackstone had expressed interest in acquiring a majority stake of 75% in Haldiram’s and made a non-binding bid. However, the talks ultimately failed as the snacks giant was reluctant to sell such a large share of its business.
Although Blackstone is eager to acquire a 20% stake in Haldiram’s at a valuation of $8 billion, there is a significant gap in valuation, as the snacks giant values itself at $12 billion. Two sources told Reuters.
As per the third source, Blackstone remains keen to deploy capital into Haldiram’s seeking between 15% to 20% of the business.
According to a third source, Blackstone continues to express strong interest in investing in Haldiram’s, with the firm seeking to acquire a stake of between 15 and 20% of the company as part of its strategic expansion into the Indian food sector.
It is worth noting that Bain Capital, Temasek, and ADIA are also vying for a minority stake in Haldiram’s, though no clear plans have been disclosed as of yet.
According to a Reuters report, last year, India’s Tata Group was in negotiations to acquire a majority stake in Haldiram’s entire snacks and restaurant business. At the time, Haldiram’s sought a valuation of $10 billion, but the talks ultimately fell through, and there are no ongoing discussions regarding a Tata deal.
