Blackstone Inc. has enhanced its bid for Haldiram’s, the renowned Indian fast-food chain, signaling a significant step towards the private equity firm’s entry into India’s thriving snacks market.
As part of a consortium of investors, Blackstone is expected to offer between Rs 70,000 and 78,000 crore for a 51 percent stake in Haldiram’s. The final offer will depend on the results of the due diligence process. If successful, this deal would grant Blackstone control over Haldiram’s product business, including a perpetual license.
Recent resolutions have addressed some of the issues that had previously delayed the deal, such as ownership of restaurants and brand licenses. The family will retain rights to the brand and restaurant operations. The Haldiram family is expected to receive an annual royalty from the new owners for brand usage under the terms of the sale.
EY is conducting the due diligence on behalf of Blackstone, with Singapore’s GIC and Abu Dhabi Investment Authority also involved in the consortium. Blackstone is set to hold the majority stake.
In response to inquiries about the deal, a Blackstone spokesperson mentioned that the firm had submitted an initial proposal in May 2024 but had not re-bid due to valuation discrepancies.
Haldiram’s has been negotiating with potential buyers since September 2023. The process has been longer than anticipated, prompting speculation that the company might consider a stock exchange listing.
Temasek and Bain had also expressed interest earlier this year. According to sources familiar with the transaction, Blackstone’s latest offer of Rs 77,000 crore for a 51 percent stake is the highest received to date. A binding term sheet could be finalized within the next 6-8 weeks.
