Advent International, one of the largest global private equity investors, has signed a definitive agreement with Shapoorji Pallonji Group to acquire a majority stake in Eureka Forbes Ltd. (EFL), known for its water purifier brand Aquaguard besides vacuum cleaners, at an enterprise value of ₹4,400 crore.

Advent managed to pip other suitors, including Havells and Electrolux, which, according to sources, were offering a much lower valuation than what the group was expecting.

Pursuant to a scheme of arrangement, the 100% subsidiary of Forbes & Company will be demerged into a standalone company, and listed on the Bombay Stock Exchange. Upon listing, Advent will purchase up to 72.56% of the outstanding stock on a fully diluted basis from the Shapoorji Pallonji Group. Post acquisition, Advent will make an open offer. The transaction is subject to closing conditions and receipt of relevant statutory and regulatory approvals.

Over the last two decades, EFL has built a multi-channel network with a unique direct sales business, strong retail presence in over 20,000 outlets, and a fast-growing e-commerce channel. It has one of the largest and most robust pan-India service networks, with an installed base of over 20-million customers visiting a kitchen every second.

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