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General Atlantic eyes Capital Foods; ChrysCapital bids for Mankind Pharma stake

US-based private equity firm General Atlantic LLC is in an advanced stage of negotiations to acquire a controlling stake in Capital Foods Pvt. Ltd, a financial daily reported.

Citing sources aware of the development, the Mint report said General Atlantic is likely to acquire a 80% stake at an enterprise valuation of Rs 1,500 crore.

Private equity investor TA Associates may also be in the race to pick up a stake in the company.

As on 31 March 2017, French private equity firm Invus Group held a 50% stake in Capital Foods, while founder Ajay Gupta held 47%. The remaining stake was held by minority shareholders, according to VCCEdge, the data research platform of News Corp VCCircle.

Incorporated in 2003, Mumbai-based Capital Foods sells instant noodles, masalas, sauces, ketchup and ginger garlic paste under the Ching’s Secret, and Smith and Jones brands. It also markets ready-to-eat products.

The company’s total income stood at Rs 341 crore and profit after tax was at Rs 2.48 crore in the year through March 2017, shows VCCEdge.

Mankind Pharma

Home-grown private equity firm ChrysCapital, along with its global sponsors, is looking to pick up a 10% stake in Mankind Pharma Ltd for $350-400 million, The Times of India reported, citing people aware of the development.

Private equity firms Advent International and Carlyle Group have also made separate binding offers to buy up to 15% stake in Mankind, the report added.

ChrysCapital had earlier exited Mankind Pharma by selling its 10.77% stake to private equity firm Capital International for $179.60 million (Rs 1,140 crore) in 2015, VCCEdge data show.

Promoted by the Junejas, Mankind Pharma is best known for its over-the-counter product portfolio and condoms sold under the Manforce brand. It is one of the largest privately-held companies in the sector.

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