Everstone picks 51% stake in auto ancillary firm SJS

Private equity firm Everstone Capital has picked controlling 51 per cent equity stake in Bangalore-based auto ancillary manufacturer SJS Enterprises for about Rs 350 crore ($54 million), The Economic Times reported citing a top executive of the firm.

The investment has been made through fresh capital infusion into the firm as well as a stake purchase from existing shareholders—American specialty printing company Serigraph and the three owners of the firm S Sivakumar, KA Joseph and V Srinivasan.

SJS Enterprises, the designer and maker of logos, overlays and dials to automotive and home appliances companies, will use the money to fuel its expansion plans.

The company will continue to be managed by the three entrepreneurs who started it in 1987. Everstone, as part of the deal, will help the firm set up its next plant near its home city and finance its expansion plans, the report added.

An email sent to the company for more details on the development did not immediately elicit a response while Everstone said, “We have acquired the entire 26 per cent equity stake of Serigraph as well as some additional stake from the founders, all three of whom continue to be invested in the company.” However, Everstone declined to comment on the deal size.

SJS makes industrial graphics for refrigerators and washing machines, and auto component makers in India as well as overseas. It gets majority of its revenue from auto and appliances makers such as TVS Motor Company, Honda Motorcycle, Bajaj Auto, Maruti Suzuki, Tata Motors, LG, Samsung and Whirlpool.

For Everstone, which recently announced the final close of its third sector-agnostic but consumer sector theme PE fund, this is the third deal this year.

Last month, Everstone agreed to acquire the bakery business of FMCG giant Hindustan Unilever Ltd housed under its unit Modern Foods for an undisclosed amount.

In July, it inked a deal to invest up to Rs 85 crore (approximately $13.4 million) in restaurateur Zorawar Kalra's Massive Restaurants, which runs the Indian-themed Masala Library, Made in Punjab and Farzi Cafe chain of restaurants and cafes.

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