A consortium of investors led by India-focused private equity fund CX Partners and Gateway Partners has acquired a significant minority stake in Mrs Bector’s Food Specialities Ltd from Ajay Bector Group and Motilal Oswal Private Equity, it is learnt.
The size of the stake and the deal amount haven’t been disclosed. It is also not clear whether Ajay Bector and Motilal Oswal have sold their entire stake in Ludhiana-based Mrs Bector’s Food, which operates under the Cremica brand.
Motilal Oswal PE invested Rs 48 crore in Mrs Bector’s Food in 2010 for a stake of around 22 per cent. This deal had provided an exit to Goldman Sachs, which had bet on the company in 2006.
Mrs Bector’s Food, founded by Rajni Bector in 1978, operates in both B2B and B2C packaged foods and bakery product segment with offerings such as biscuits and sauces. It was controlled by three siblings — Anoop, Akshay and Ajay Bector — with equal shareholding. As part of a 2013 family settlement, Anoop took charge of the biscuits and bakery unit, while Akshay now helms the condiments business.
In the biscuits category, Cremica focuses on high-margin segments like cookies, creams and crackers. It has a network of over 1,500 distributors across north India.
It also runs a fast-growing breads and buns business under the 'Mrs Bector's - English Oven' brand with revenue growing at a compound annual page of more than 50 per cent in the last five years. It is also the exclusive supplier of buns to global quick-service restaurant brands McDonalds and KFC.
Investment bank o3 Capital advised the company, Motilal Oswal PE and the promoters on the transaction.