Mumbai: Home-grown private equity firm Everstone Group on Monday said it has agreed to acquire Kenstar, a brand of air coolers, air conditioners and other home appliances, from Century Appliances Ltd, an associate of the Videocon Group.
The proposed sale, subject to statutory approvals and specific clearances, includes the purchase and transfer of the Kenstar brand and businesses under the brand on a going-concern basis, including a state-of-the-art manufacturing facility, as well as assets, Everstone said in a statement. It did not disclose financials details of the transaction.
Everstone is an India- and Southeast Asia-focused business group and multi-asset manager with assets under management of approximately $4 billion and offices in Singapore, Mumbai, Delhi, Bengaluru, Mauritius and London.
Under the agreement, the existing management team at Kenstar, led by business head Rajiv Kenue, will continue to manage the business, and will be strengthened significantly by the operational capabilities, additional resources and financial investments of the Everstone Group.
“Kenstar is a marquee household appliances brand with a strong recall. Everstone looks forward to significantly invest in the Kenstar brand and leverage our operating expertise to unlock its true potential by strengthening the dealer network, supporting product innovation, and investing in brand building,” said Avnish Mehra, managing director at Everstone.
As part of the deal, Everstone will also enter into a strategic alliance with Videocon group, among others, for manufacturing, cooperation on Kenstar brand, and developing new products.
“We believe Everstone is the perfect partner for Kenstar with the right mix of financial resources and operating expertise to rapidly grow the latent potential of the Kenstar business,” said Anirudh Dhoot, director, Century Appliances Ltd.
Kenstar is a market leading brand of air coolers, with No. 1 or strong No. 2 positions in most regions in India and a national No. 2 share, according to the statement. “Kenstar also has a significant and growing presence in air conditioners and a broad range of home appliances such as mixer grinders, juicer mixer grinders, food processors, electric kettles, oxy fryers, microwave ovens, water heaters, and smart ceiling fans,” it added.
The deal is yet another instance of the private equity firm carving out a business from a large conglomerate.
In April 2016, Everstone acquired Hindustan Unilever Ltd’s bread and bakery division under the brand Modern in April 2016. Everstone has also built from scratch businesses such as Burger King’s India franchise.
The Everstone Group currently spans a portfolio of over 30 companies, with a combined turnover of over Rs. 12,000 crore. Everstone’s investments in the consumer sector includes companies such as Modern Foods, Ritu Kumar, S. Chand Group, Ozone, Burger King India, Burger King Indonesia, Domino’s Indonesia, and several marquee restaurant brands.[“Source-livemint”]