Beloved pan-India bakery chain, Theobroma, is likely to be sold by the promoters to homegrown private equity firm ChrysCapital. The firm is expected to buy a 90 per cent stake from the company’s promoters and existing investor ICICI Venture in a deal worth Rs 2,410 crore. Currently ICICI Venture holds 42 per cent stake in Theobroma, which it had bought for Rs 130 crore in 2017.
According to a report in The Economic Times, the promoters would retain 10 per cent stake. The report added that ChrysCapital resumed talks to acquire Theobroma for lesser than the original valuation of Rs 3,000 crore, asked by the founding family and other shareholders.
The talks got delayed due to Theobroma’s weak financial results. Now, a formal announcement is expected to be made in a few weeks. Theobroma had also explored the possibility of an initial public offering but backed out due to market volatility.
As per the report, other contenders including Bain Capital, Carlyle, Switz Group that operates Monginis baker chain, had shown initial interest in Theobroma.
ChrysCapital’s deal comes amid its plans to create a quick-service restaurant (QSR) platform by buying brands such as Theobroma and The Belgian Waffle Co.
Theobroma currently has 200 stores across 30 cities. It was started in 2004 by sisters Kainaz Messman Harchandrai and Tina Messman Wykes. Their first outlet had come up at Cusrow Baug on Mumbai’s Colaba Causeway. The bakery chain is known for its delectable range of offerings including brownies, cakes, desserts, chocolates, breads and other snacks.
