Theobroma sale: Chrys Capital, Carlyle, Bain in final stage

livemint.com:

Oberoi Hotels pastry chef Kainaz Messman, had launched the sale process in January, after its private equity backer ICICI Venture decided to exit its investment. The company appointed investment bank Arpwood Partners to line up buyers. “The real negotiations will begin now.

The deal size is expected to be in the range of ₹2,500-3,000 crore," the second person cited above added. Queries emailed to spokespersons for ICICI Venture, Bain Capital, Chrys Capital and Carlyle Group remained unanswered. When contacted over phone, founder Messman declined to comment.

Also Read | Cookies, cakes & stakes: Theobroma may change hands The founder-owners, as well as ICICI Venture which holds a 42% stake in Theobroma, plan to sell their entire shareholding as part of the transaction. Mint had reported in January that the owners were expecting a valuation of around ₹2,800 crore for the company. ICICI Venture is the alternative investment arm of ICICI Bank.

Theobroma’s first pastry store opened in Mumbai’s Colaba Causeway in 2004, and was run by the founding family. ICICI Venture bought a significant minority share in the food services company in 2017 for about $20 million. The funds were infused in two equal tranches, of which the first instalment was used to expand the brand to Delhi-NCR, and expand its presence in Mumbai and Pune.

Since then, Theobroma has grown to become a pan-India chain of patisseries with 194 stores. Theobroma Foods reported a standalone net profit of ₹19.59 crore in FY23, against a net loss of ₹11 crore in FY22. Revenue from operations rose from ₹254.74 crore in FY22 to ₹351.67 crore in FY23, according to data platform Tofler.