Forbes & Co hit an upper circuit limit of 5% at Rs 4184.35 after US-based buyout firm Advent International agreed to buy a majority stake in Eureka Forbes, the consumer durable flagship of Shapoorji Pallonji Group.
Advent International ("Advent"), one of the largest and most experienced global private equity investors, on 19 September 2021 announced that it has signed a definitive agreement with Shapoorji Pallonji Group ("SPG") to acquire a majority stake in Eureka Forbes ("EFL" or the "company").EFL is a market leader in the health and safety solutions space in India, with a presence in water purification, vacuum cleaning and other emerging categories. The transaction values Eureka Forbes at an enterprise value of Rs 4,400 crore, subject to closing adjustments.
EFL, a 100% subsidiary of Forbes & Company, will be demerged into a standalone company and then be listed on the BSE. Upon listing of EFL, Advent will purchase up to 72.56% of the company's then outstanding stock on a fully diluted basis from SPG. Advent will thereafter make an open offer in compliance with applicable regulations. The transaction is subject to closing conditions and receipt of relevant statutory and regulatory approvals.
Forbes & Co will not receive any consideration from such sale as the transaction is between Shapoorji Pallonji and Company and Lunolux (the acquirer).
The transaction will help SPG pare its debt and focus on its core businesses & competencies
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Forbes & Co is a holding company. The company's segments include engineering, health & hygiene, real estate, IT enabled services and products, shipping and others.
On a consolidated basis, Forbes & Co reported net loss of Rs 4.34 crore in Q1 June 2021 as against net loss of Rs 45.97 crore in Q1 June 2020. Net sales rose 29.56% to Rs 545.45 crore in Q1 June 2021 over Q1 June 2020.
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