Bain Capital has agreed to make its first Indian investment since opening an office in Mumbai in 2008. The private-equity firm will invest $124 million into Himadri Chemicals & Industries Ltd. in exchange for a 35.39% stake.
The deal involves an initial $54 million investment for a 15.39% holding in Himadri. Afterward, Bain will launch a tender offer for 20% of the expanded share base, requiring an additional $70 million. Himadri shareholders will vote on the proposed transaction at a Jan. 29 extraordinary general meeting.
Kolkata, India-based Himadri, a coal-tar pitch and advanced downstream chemical products manufacturer which makes lithium batteries among other goods, will use the capital from Bain to complete its plan to expand into China and other markets and triple its capacity in some core products.
Bain retained Enam as its financial advisor on the deal, and is also working with legal advisors Kirkland & Ellis and AZB & Partners. UBS and law firm Argus Partners are working with Himadri.
Himadri already counts private-equity firms CVC Capital Partners and International Finance Corp. (an arm of the World Bank) as investors.
"Himadri is today the clear leader in its business segments in India," said Anurag Choudhary, Himadri chief executive, in a press release. "We welcome Bain Capital into the Himadri family, and hope to leverage their investment and value addition expertise, proven with a number of leading global companies, to help take Himadri to a global leadership position."
Bain's Mumbai office was established by managing director Amit Chandra, who joined the PE firm in early 2008 from DSP Merrill Lynch, where he oversaw the global markets and investment banking division. The Mumbai branch also houses principal Pavninder Singh, vice presidents Nikhil Raghavan and Kaustuv Sen, and senior associates Samonnoi Banerjee and Vijay Nallan Chakravarthi.
The Jan. 2 announcement about the Himadri investment came two days after Bain publicized the completion of its $1.1 billion acquisition of Japanese call center operator Bellsystem24
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