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ChrysCapital to buy Theobrama for up to $270 million: report
ChrysCap will buy a 90% stake with an option to acquire more, while former Oberoi Hotels pastry chef Kainaz Messman and her family are expected to retain about 10% ownership in the bakery chain, Mint reported.
Domestic private equity firm ChrysCapital will buy a controlling stake in Mumbai-headquartered bakery chain Theobroma Foods for about Rs2,200-2,300 crore (up to $270 million), Mint reported, citing people familiar with the matter.
ICICI Venture, which had made an investment in the bakery chain in 2017, will exit the company in a deal that is likely to be signed in a fortnight, the report said.
Theobroma was established in 2004 by Kainaz Messman in Mumbai’s bustling commercial hub Colaba Causeway. From then, it has grown into a network of 194 stores.
Messman, a former pastry chef at Oberoi Hotels, and her family are expected to retain about 10% ownership in the bakery chain, Mint reported.
ChrysCapital will buy about 90% stake with an option to acquire more going forward, the business daily added.
In 2017, ICICI Venture acquired a substantial minority stake in Theobroma Foods for about $20 million, and provided capital in two installments.
The first tranche was used for Theobroma’s expansion into Delhi-NCR and reinforced its presence in Mumbai and Pune.
According to Tracxn data, the company’s revenue rose to $54.6 million in FY24, compared to $41 million in FY23.
Currently, ICICI Venture holds about 42% of the bakery chain’s shares.
Other private equity firms such as Bain Capital and Carlyle Group had previously expressed interest in acquiring a stake in Theobroma Foods, according to Mint. However, negotiations were reportedly prolonged due to disagreements over valuation.
Once complete, this would be ChrysCapital’s first investment in the consumer foods sector. It has previously invested in companies such as Wow Skin Care and children’s retailer FirstCry.
