INDIA – US based private equity firm, Advent International has agreed to acquire up to 68% stake in Indian snack food producer DFM Foods for around Rs851.6 crore (US$119m) in an all-cash deal.

Under the agreement terms, Advent will purchase up to 34.1 million DFM shares, representing up to 68% of the company’s stock from its promoters, Mohit Jain and Rohan Jain WestBridge Crossover Fund, LLC and certain other shareholders.

According to the regulatory filing by the company, promoters hold 75.6 percent stake in DFM Foods. By acquiring the share in the company, promoters including WestBridge will fully exit their investments in DFM.

Commenting on the deal, Mohit Jain, chairman and managing director of DFM Foods said: “We appreciate the support we have received from WestBridge Capital in expanding the company over the past five years and welcome Advent International as DFM’s new majority shareholder to help drive continued growth and consolidate the business in the future.”

The deal is expected to vary between Rs851.6 crore and Rs923.4 crore ($119 million to US$130 million) depending on the open offer subscription.

Completion of the recent acquisition is subject to customary closing conditions and is expected to be finalised in three to four months, becoming Advent’s seventh investment in India in the past four years.

Director at Advent in Mumbai Sahil Dalal said:“The food and beverage market in India is a fragmented, regional industry and we look forward to working with DFM to build a larger and broader food and beverage business through further organic growth and targeted M&A.”

DFM, whose product portfolio include corn rings, corn puffs, wheat puffs and crispy sticks under brand names Crax, Curls and Natkhat, has been manufacturing, marketing and distributing packaged snack foods in India for over 35 years.

“DFM is a leader and innovator in a large, fast-growing segment of the Indian food and beverage industry,” said Shweta Jalan, managing director and head of India at Advent International.

“The Company has strong brand awareness and distribution and numerous opportunities for continued growth. We are excited to partner with DFM to help drive its next phase of expansion.”