Malaysia-based has sold its majority stake in direct sales and distribution player Andromeda Sales and Distribution Pvt Ltd to Casa Capital Management Pvt Ltd. Casa Capital will pick up approximately 90 per cent stake in Andromeda Sales and Distribution, which was demerged from Andromeda BPO. However, the financial details of the current transaction were not disclosed.
Andromeda was acquired by Navis Asia Fund V back in 2007 for a reported Rs 180 crore. The private equity firm and the promoters continue to hold the business process outsourcing unit of Andromeda. Singhi Advisors was the sole financial advisor to Navis Capital and the promoters of Andromeda on the transaction.
Casa Capital Management is a financial services holding company but more information on the buyer was not immediately available.
“The sale of Andromeda marks the fourth exit in the past six months and demonstrates the fact that even in difficult times, it is possible to sell a quality asset – particularly if you are able to sell a controlling stake,” said Nicholas Bloy, managing partner of Navis.
Navis Capital sold its Dunkin’ Donuts and Au Bon Pain business in Thailand earlier this year, netting 2.45x. One of its biggest exits came when it sold its stake in garment label solutions firm Trimco International to Partners Group, making 11x.
Navis Capital, which focuses on buyout transactions, currently owns firms like restaurant chain Nirula’s and college chain ITM in India. Its most recent deal came in June 2011 when it acquired a majority stake in automobile-decal and graphics designer Classic Stripes Pvt Ltd (CSPL) for around $100 million.
Navis said that during its ownership over a period of five years, Andromeda became the leading independent financial products distributor in India, expanding its coverage from 5 to 12 cities. It focuses on financial services products including personal loan, loan against property, mortgage and insurance.
“Navis believed in the organic growth prospects of the business, supported by strong growth and increasing penetration of financial services in India. Andromeda has expanded its product offering and principal base to distribute more than 30 products on behalf of 15 or more local and international banks and insurance companies,” the company stated.
(Edited by Sanghamitra Mandal)