November 11th, 2023
MergerDomo’s weekly Newsletter brings you the latest on M&As, JVs, Investments and noteworthy partnerships that are shaping the future of businesses in India.
This week's M&A highlights in India feature significant deals, such as Raymond Group enhances engineering prowess with Maini Precision acquisition, Norwest fuels Regency Healthcare's UP expansion, L&T divests LTIEL, Adani mulls Wilmar stake sale, Byju's discusses Epic deal, Airtel and Vodafone Idea sell FireFly, Eris Lifesciences acquires Biocon's units, Ambuja Neotia enters hospitality via acquisition, Tata Electronics acquires Wistron, Saudi Arabia eyes IPL stake, Game Theory transforms with Matchday.ai, KPMG explores mega merger, Sterlite Power demerges infrastructure business.
Raymond Group has successfully acquired a 59.2% stake in Maini Precision Products (MPPL) for INR 682 crore, funded by a combination of debt and internal accruals. This strategic move aims to fortify Raymond's engineering business, expanding its reach into the aerospace, defense, and electric vehicle (EV) sectors. The consolidated business, led by Gautam Maini, the founder of MPPL, will serve top global OEMs and tier 1 manufacturers. The acquisition, facilitated through Ring Plus Aqua (RPAL), a subsidiary of JK Files and Engineering, will see Raymond consolidate JK Files, RPAL, and MPPL, forming a new subsidiary with 66.3% ownership. Gautam Hari Singhania, Chairman & Managing Director of Raymond Limited, expressed his optimism about the acquisition, emphasizing its alignment with the 'Make in India' initiative and the China Plus One strategy, which has been advantageous for the company. This acquisition not only enhances Raymond's presence in rapidly growing sectors but also provides an opportunity to leverage new avenues for expansion.
Read more lessNorwest Venture Partners, supported by US banking major Wells Fargo and managing USD 12.5 billion in assets, is set to acquire a stake worth INR 450 crore in Kanpur-based Regency Healthcare. Regency Health plans to use this investment to expand its bed capacity from 700 to 2,300 by 2027, with the immediate establishment of new facilities in Gorakhpur, Kanpur, Varanasi, and Lucknow. HealthQuad, a previous investor in Regency Health, successfully divested its stake in the company as part of this transaction. Regency Health aims to redefine healthcare excellence in Uttar Pradesh, leveraging this significant investment.
Read more lessLarsen & Toubro (L&T), a prominent Indian multinational, is set to sell its entire 100% stake in L&T Infrastructure Engineering Limited (LTIEL), a provider of infrastructure engineering consultancy services in India. The stake will be acquired by STUP Consultants Private Limited, a subsidiary of Assystem SA, a French entity. This strategic move aligns with L&T's commitment to concentrate on core businesses and assets. LTIEL, a provider of standalone engineering consultancy services for India's infrastructure sector, generated revenues of INR 92 crore in FY23. This divestment, aimed at exiting non-core consulting engineering practice, is expected to provide LTIEL and its employees with new growth opportunities and is scheduled for completion before January 15, 2024.
Read more lessAdani Group is in advanced discussions to divest its entire 43.97% stake in Adani Wilmar Ltd, the producer of Fortune brand edible oils and grocery items. The deal, estimated at USD 2.5-3 billion, aims to refocus the conglomerate on core infrastructure areas and raise liquidity. While Adani Enterprises denied the reports initially, sources suggest the transaction may conclude within a month. The move follows concerns about non-core assets following the Hindenburg short-seller report and an aborted share sale, causing significant wealth erosion for Adani Group investors.
Read more lessTroubled Indian ed-tech giant Byju's is in advanced negotiations to sell its US-based digital reading platform, Epic! Creations Inc., for approximately USD 400 million to Joffre Capital Ltd., a tech-focused buyout firm. The potential sale aims to alleviate financial pressures and assist in repaying a disputed USD 1.2 billion term loan resulting from a global acquisition spree. Multiple bidders, including Duolingo Inc., have expressed interest. Moelis & Co. is overseeing the sale process, with a potential deal to be concluded this month. Byju's may decide to retain the assets, leaving the outcome uncertain amidst a legal battle with creditors and regulatory scrutiny.
Read more lessIndian telecom giants Bharti Airtel and Vodafone Idea have each agreed to sell their full stakes in FireFly Networks, a WiFi infrastructure provider, to Singapore's Manipura Digital Infrastructure OPCO Pte. Ltd. The combined deal amounts to INR 12.1 crore, with each telecom operator receiving INR 6.05 crore. This strategic move enables the telco’s to shift their focus to 5G expansion while continuing to be customers of FireFly. The new owners are set to inject up to USD 100 million into FireFly, boosting its WiFi infrastructure expansion efforts. FireFly facilitates mobile network traffic offloading onto WiFi networks, offering cost-effective and improved service quality.
Read more lessEris Lifesciences has entered into a definitive agreement to acquire Biocon Biologics' dermatology and nephrology business units in India for INR 366 crore. This strategic move positions Eris as the second-largest player in psoriasis, capturing an 11% market share. The acquisition, funded partly through debt financing, includes over 20 mother brands with a revenue run-rate of INR 100 crore. Eris, known for successful turnarounds, solidifies its presence in dermatology and enters nephrology, aligning with its strategic goals and capital allocation framework. The deal is expected to close by the end of November 2023.
Read more lessKolkata's Ambuja Neotia Group has made a strategic move by acquiring Gurugram's Tree of Life Resorts & Hotels, a boutique hotel chain with 14 locations across India, in a deal valued at INR 70-80 crore. This acquisition enhances Ambuja Neotia Group's presence in the hospitality sector, adding 200 keys to its existing portfolio, which is already managed by global brands like IHCL. The deal marks the group's entry into hotel management and signifies an expansion beyond the eastern region. Ambuja Neotia Group now operates 23 hotels and resorts across multiple Indian states. IHCL is expected to take over management contracts for some of Tree of Life's assets.
Read more lessTata Electronics, a wholly-owned subsidiary of Tata Sons, has finalized the acquisition of Wistron India, including its manufacturing facility. The deal, valued at USD 750 million, positions Tata as the first Indian company to assemble iPhones. While the equity portion amounts to USD 125 million, an additional USD 75-80 million term debt and a USD 550 million inter-corporate loan have been incorporated into the transaction. The acquisition marks a significant step in the maturation of India's contract manufacturing industry and is expected to stimulate further investments in the Indian electronics manufacturing ecosystem.
Read more lessSaudi Arabia is reportedly exploring a significant financial stake in the Indian Premier League (IPL), the world's richest cricket league, with a potential investment worth several billion dollars. Advisers to Crown Prince Mohammed bin Salman have engaged with Indian officials to discuss moving the IPL into a holding company valued at up to USD 30 billion. The kingdom is said to propose a USD 5 billion investment, envisioning an expansion similar to football's English Premier League. While Saudi Arabia is eager to proceed, decisions await discussions with the Indian government and the cricket regulator after the federal elections in 2024.
Read more lessGame Theory, a leading sports tech company backed by Rainmatter, has acquired sports analytics startup Matchday.ai in a strategic deal of undisclosed value. Completed on October 28, 2023, the acquisition aims to fortify Game Theory's position in the sports gaming sector, leveraging Matchday.ai's advanced computer vision and AI capabilities. This move, facilitated by Prequate Advisory, signifies a groundbreaking union, democratizing cutting-edge sports technology. Game Theory aims to revolutionize real sports experiences for users of all levels, introducing tech-enabled coaching and identifying micro-improvements for casual players. The acquisition marks Game Theory's foray into transformative partnerships, ushering in an era of accessible high-tech sports engagement.
Read more lessKPMG India, KPMG US, and KPMG UK are exploring an industry-first merger of their advisory practices, combining consulting, risk, tech consulting, and deal advisory, aiming to accelerate their consulting business in India. This move aligns with the global trend among Big Four firms to resolve conflicts of interest and leverage growth in technology consulting and risk services. The new entity, part of "Project Himalaya," could soon encompass 50,000 people and generate over USD 1 billion in combined revenue from Indian platforms. This strategic step positions KPMG India to attract top talent, enhance service delivery, and better compete with industry peers.
Read more lessSterlite Power Transmission has announced a strategic decision to demerge its power transmission infrastructure business. The demerged entity, Sterlite Power Transmission Ltd (SPTL), will focus on global products, specialized EPC services, and the convergence-fiberco business. This move aligns with the company's intent to create distinct "pure play" business verticals based on end-customer base and investor class. The power transmission network is projected to double globally in the next 8 years, driven by aggressive renewable energy additions and robust demand for power products. The demerger scheme is pending approval from the National Company Law Tribunal (NCLT).
Read more lessIn a week filled with strategic maneuvers across diverse industries like Engineering, Healthcare, Infrastructure, Ed-tech, Telecommunications, Pharmaceuticals, Hospitality, Electronics Manufacturing,Sports Technology, Consulting, Power Transmission. These deals showcase India's diverse business environment. Stay updated on India's M&A developments as we continue to bring you the latest news and insights.
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