October 31, 2020

Mexico’s Grupo Bimbo eyes majority stake in Trendy Meals enterprise



Mumbai: Mexico’s largest meals and bakery firm, Grupo Bimbo is in preliminary discussions to accumulate a majority stake in Everfoods, the packaged meals platform owned by non-public fairness agency Everstone Capital, two folks conscious of the event mentioned.

Everfoods predominantly consists of as soon as cult Trendy Bread model that Everstone had acquired from Hindustan Unilever in 2015 together with the bread and bakery enterprise. It additionally contains different manufacturers akin to Cookie Man.

One among the many largest baking corporations on the earth, Grupo Bimbo has presence in 33 international locations, promoting its 100 plus manufacturers akin to Entenmann’s, Bimbo, Tia Rosa, Marinela, Barcel, Sara Lee, Oroweat and Arnold Bread. At current, Grupo Bimbo sells bakery model Harvest Gold in India, which was acquired in 2017 as a part of its India entry.

Funding financial institution Investec is advising Everstone within the sale course of. Monetary particulars of the transaction just isn’t identified.

As soon as the deal materialises, the $15-billion Grupo Bimbo will use this platform for a powerful foothold in India as Trendy Meals has a large distribution community within the nation. Trendy Meals’s bread and bakery merchandise are manufactured and marketed nationally by way of a community of over 40 manufacturing vegetation and greater than 80,000 retailers. With a income of Rs.400 crore, Trendy bread holds about 35-40% market share in Indian bread market.

Trendy Meals competes with different bakery manufacturers akin to Britannia, Harvest Gold, Nature’s Personal and English Oven.

An Everstone Capital spokesperson declined to remark whereas mail despatched to Grupo Bimbo didn’t elicit any response until the press time.

The Bakery trade in India, beneath the key classes of bread, biscuits, and desserts & pastries, is valued at $eight billion. The trade is rising at a median fee of 10 per cent since 2015. There are about 2,000 organised bakeries and greater than 10 lakh unorganised small-scale bakeries working in India.

Everfoods had acquired the Trendy model from Hindustan Unilever Restricted in 2016. Put up Trendy model buyout, Everfoods expanded the presence by way of a number of buyouts. Final 12 months, Trendy Meals had acquired Nationwide Capital Area -based Supreme Baker India, which sells Citi Contemporary and Topsim Meals manufacturers. In 2018, Trendy Meals had acquired Chennai primarily based Australian Meals India, which sells contemporary baked cookies beneath the Cookie Man model.

In addition to Everfoods, Everstone additionally owns F&B Asia Ventures Ltd, a pan-Asian platform within the meals and beverage area. It owns and operates main manufacturers akin to Burger King (India and Indonesia) and Domino’s (Indonesia), Masala Library, Farzi Café, Pa Pa Ya, Masala Bar, Harry’s, Pind Balluchi, and Duck & Rice.

Everstone additionally plans to promote a part of its stake in Burger King India Ltd, the nationwide grasp franchisee of the American burger model in India, by way of the proposed preliminary public providing (IPO). Everstone, by way of its funding automobile QSR Asia Pte Ltd, owns about 99% stake in Burger King India.

Based in 2006 by former Goldman Sachs bankers Sameer Sain and Atul Kapur, Everstone Capital at present manages $four billion of property beneath administration.

The homegrown non-public fairness fund Everstone has been seeking to exit about 4 extra portfolio corporations this 12 months.

Everstone Capital plans to promote its Singapore primarily based IT providers agency Everise Holdings Inc. in a deal value $300 million whereas it has begun discussions with world buyers to promote a part of its 25% stake in Mumbai-based nutraceutical components participant OmniActive Well being Applied sciences.

The fund additionally plans an exit from Hinduja Group‘s non-banking financing arm, Hinduja Leyland Finance.