Blackstone makes move for ₹40,000 crore entry into Indian snacks market, to acquire 51% stake in Haldiram’s: Report

Blackstone Inc., the American investment firm, is expected to bid nearly ₹40,000 crore for a 51 per cent stake in the iconic Indian snack brand Haldiram's, Moneycontrol reported on Monday, July 29, quoting people aware of the matter.

The investment firm has increased its offer for the stake sale at Haldiram's, which is a move for Blackstone to get into India's lucrative snacks market, the report said. 

The Blackstone deal is going to put Haldiram's market valuation between ₹70,000 crore and ₹78,000 crore, as per the report. The final offer made to the promoters of the company will be based on the outcome of the due diligence process. The deal will give Blackstone the majority stake, the controlling power and a perpetual licence of Haldiram's product business, according to the report.

Issues that were holding up the deal, like the ownership of restaurants and the brand licence have been resolved, said the people in the know, quoted in the report. The company's brand rights and control over the restaurants' operations will stay with the Agarwal family. 

“The deal and valuations were getting stretched on these issues, and now, with the matter brought to a closure, the deal should close soon,” reported the news website quoting a banker aware of the development.

This will provide the Haldiram family with an annual royalty payment from the new owners for using the brand, as terms of the sale. 

Ernst and Young (EY), the auditor firm is carrying out the due diligence on the Haldiram deal on behalf of Blackstone. The deal will have Singapore’s GIC and Abu Dhabi Investment Authority (ADIA) as a consortium, but Blackstone will hold majority stakes, said the report.

Blackstone “has not re-bid for Haldiram’s (We had submitted an initial proposal in the month of May 2024). The discussion did not move forward because of the valuation mismatch," said a spokesperson of the investment firm responding to the query, as per the report. Haldiram's Chief Executive Officer (CEO) Krishan Kumar Chutani refused to comment on the development, according to the report.

Earlier in July, Moneycontrol reported that Blackstone was in early talks with the snack maker to acquire a controlling stakeholding in the company. Haldiram's has been in conversations with potential buyers since September 2023, as per the report.

“Now the talks with Blackstone have reached finality, and at a valuation of ₹78,000 crore for 51 per cent, this is the best offer received for the company,” a banker aware of the matter told the news agency.

People aware of the matter told Moneycontrol that the potential buyer's binding term sheet for the deal is likely to be finalized in the coming six to eight weeks.