TPG, Carlyle in talks to buy up to 12% stake in Allied Blenders for around $250M

Allied Blenders & Distillers (ABD) will sell up to 12 per cent stake to PE firms TPG and Carlyle Capital for about $250 million, as per a PTI report citing its vice chairman and chief executive Deepak Roy.

"We have signed two term sheets with Carlyle and TPG already. We are looking at raising $200-275 million in part equity and debt and are ready to divest up to 10-12 per cent to them," Roy told the news agency.

ABD will use the funding for both organic and inorganic expansion and is in talks to buy Tilaknagar Industries but the deal is struck on the valuations.

The proposed acquisition of Tilaknagar Industries will give ABD a strong foothold in the brandy market and, consequently, good presence in the southern part of the country, as that region is the biggest market for brandy in India.

The company has lined up Rs 450-500 crore capex this fiscal, which will be used to acquisition and bottling capacity expansion.

One of the key spirits company in the country, ABD’s flagship brand, Officer’s Choice, is currently one of the largest selling whisky brand in the world. It also has grain vodka under Class 21, Jolly Roger rum, Officer’s Choice Blue and Lord & Master brandy among other brands.

Last year in May, ABD had acquired West Bengal-based Wales Distilleries for an undisclosed amount.

In FY14, ABD has achieved sales of 25 million cases, up 24 per cent growth over the previous fiscal year. The company has been recording a CAGR of 20 per cent over the past five years.

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