’Largest private equity buyout in India’: Blackstone in advanced talks to acquire controlling stake in Haldiram’s

Blackstone Inc. is in advanced talks with Haldiram's, India's largest family-run snacks business, to acquire a controlling stake in the company, Moneycontrol reported.

The report quoted people aware of the developments, saying that the New York-based alternative investment firm is looking to take a controlling stake at a valuation of up to ₹70,000 crore.

Blackstone and its partners, Abu Dhabi Investment Authority and Singapore's GIC, which backs Blackstone's global funds, have been in talks with the Haldiram Agarwal family for the last few months. The Economic Times reported on May 14 that the differences in company valuation have delayed the negotiations. Blackstone allegedly was in talks to acquire up to a 76 per cent shareholding in the snackmaker.

Moneycontrol reported, quoting sources, that Haldiram's promoter group has been back in talks with the New York-based investment firm over the last few weeks.

“There has been a lot of back and forth with the family members over the valuation of the business. Also, the family is not looking at giving away a 76 per cent controlling stake, which the private equity investors wanted, and want to retain a larger share of the business," said a source aware of the matter, according to the report. “Some family members would like to sell only a 51 per cent stake but the current discussions with Blackstone are likely to see a stake sale of closer to 74 per cent,” they said.

According to the report, sources said the stake sale to Blackstone still poses a chance of failure in case the promoters choose to take Haldiram public. If this deal goes through, it will be the largest private equity buyout deal in India.

The Agarwal family is considering taking the company public, valuing it at $8-8.5 billion from private investors. Bloomberg reported that in June, it did not meet the family's $12 billion expectations. Along with Blackstone, Haldiram has also received bids from Bain & Co. and Temasek Holdings, according to the report.

A spokesperson from Blackstone and Haldiram Chief Executive Officer KK Chutani declined to comment.

This deal comes after the merger of Haldiram's Nagpur and Delhi factions, approved by the Competition Commission of India in 2023.

Haldiram's sells namkeen (salted) snacks, sweets, ready-to-eat food, pre-mix foods, frozen foods, etc., in India as well as exports to countries of Europe and the United States.

Haldiram's operating income increased 34 per cent to ₹1,812 crore in the financial year 2023 from ₹1,350 crore in 2022, increasing the brand's strength and fueling its sales growth, according to an ICRA report released in December 2023.