Homegrown private equity firm ChrysCapital scoops up bakery chain Theobroma in ₹2,410-crore deal

Time of India

2 days ago

Mumbai | New Delhi: Homegrown private equity firm
ChrysCapital
has agreed to acquire pan-India bakery chain
Theobroma Foods
for ₹2,410 crore, said people with knowledge of the matter.
According to an agreement signed between the parties, ChrysCapital will buy around 90% stake from the company's promoters and existing investor
ICICI Venture
. The promoters will retain about a 10% stake, the people said.
ICICI Venture holds a 42% stake in Theobroma. In 2017, ICICI Venture bought the stake for $20 million (₹130 crore at the time).
ChrysCapital resumed talks for acquiring Theobroma at a price lower than the original valuation ask of ₹3,000 crore from the founding family and other shareholders, ET reported in March.
The discussions, which got stalled for about a month and a half due to Theobroma's weak financial results, resumed a few months ago, the people cited above said, adding that a formal announcement is expected in a few weeks.
"Even though the Theobroma deal has been signed at a lower valuation compared to what was brought on the table first, it's being seen as a precedent for revival of
high-value transactions
in the dining and cafes sector," said a person directly aware of the developments. There are half a dozen such transactions and deal negotiations, which are currently stalled, waiting for the market to revive, the person said.
Other contenders including Bain Capital, Carlyle, and the Khorakiwala family-owned Switz Group, which operates Monginis bakery chain, had shown initial interest in Theobroma.
Arpwood Capital advised the promoters on the deal.
ET was the first to report on September 27 that ChrysCapital was keen on creating a
quick-service restaurant
(QSR) platform by buying out brands such as Theobroma and The Belgian Waffle Co.
Privately-held Theobroma was started by sisters Kainaz Messman Harchandrai and Tina Messman Wykes two decades ago, with their first outlet opening in 2004 at Cusrow Baug on Mumbai's Colaba Causeway. According to its website, Theobroma has 200 stores in over 30 cities offering brownies, cakes, desserts, chocolates, breads, and snacks.
Theobroma is expected to post revenue of ₹525-550 crore in FY25 with an Ebitda of ₹80-100 crore, said the people cited above. Adjusted Ebitda stood at ₹60 crore on a revenue of ₹400 crore in FY24. The company had also explored the possibility of an initial public offering but deferred the plan due to market volatility.
ICICI Venture and Theobroma did not respond to ET's email queries. A spokesperson for ChrysCapital declined to comment.
India's restaurant and cafe industry sector is witnessing a rebound in deals, after five quarters that saw consumers either postpone discretionary spending or reduce ticket sizes.
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Devyani International
take a controlling stake in Sky Gate Hospitality, which owns domestic chain Biryani By Kilo.
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