Personal care products and oleo-chemicals maker VVF today announced the acquisition of Canada-based antiperspirant and deodorant maker, Teo Corp. This is the company’s second acquisition in North America after picking up Colgate’s manufacturing facility in Kansas in November Teo Corp had declared bankruptcy in late 2006 and the company will now operate as a wholly owned subsidiary of VVF.
The Colgate plant would be used to produce bar soaps and liquid home and personal care products. Through this acquisition, VVF will now have the capability to produce a range of underarm, deodorant and antiperspirant sticks as well as pain relief sticks. VVF would use the plant to expand its product line offering in North America and to further build its position in the growing private label market for personal care products.
VVF is largely into contract manufacturing for brands like Nivea in addition to having its own soap brands such as Doy, Doycare Aloe Vera, Shiff and Jo. Exports constitute over 50% of the Rs. 675 crores company’s turnover. The company aims to cross the Rs. 1000 crore-mark by 2008. In addition to the yet to be started North America operations, VVF also has operations in Dubai through which it taps the European and African markets.
Read the Business Standard article for more details.
Thursday, January 18, 2007
Subex Azure to buy Syndesis for Rs. 730 crores
Subex Azure has entered into a conditional contract to acquire Canadian firm Syndesis. Subex Azure is a leading vendor of revenue maximization solutions for telecom operators. Syndesis is a global provider of telecom OSS (Operations Support Software) solutions. The acquisitions is in the form of an all cash deal and values Syndesis at $164.5 mn (around Rs. 730 crores) based on Syndesis’ trailing twelve months (TTM) revenues of $45 mn. Subex had earlier acquired UK-headquartered Azure Solutions Limited for $140 mn in June 2006.
If completed, this acquisition will be a milestone in Subex Azure's drive to become the leading global vendor of telecom OSS solutions. Following the close of the transaction, expected on or before March 31, 2007, Syndesis will become a part of Subex Azure. The expanded Subex Azure will reorganize itself into three distinct Strategic Business Units (SBUs) - Revenue Maximization Solutions SBU, Fulfillment & Assurance Solutions SBU and BT Business SBU. The current Subex Azure business, excluding business from British Telecom, will form the first SBU, the current Syndesis business will form the second SBU and the current Subex Azure business from British Telecom will form the third SBU. These SBUs will operate as independent revenue centers, each focused on delivering on its strategic plan and each leveraging its independent resources of account managers, domain experts and support specialists for superior product delivery and customer satisfaction.
Read the Business Standard and The Economic Times articles.
If completed, this acquisition will be a milestone in Subex Azure's drive to become the leading global vendor of telecom OSS solutions. Following the close of the transaction, expected on or before March 31, 2007, Syndesis will become a part of Subex Azure. The expanded Subex Azure will reorganize itself into three distinct Strategic Business Units (SBUs) - Revenue Maximization Solutions SBU, Fulfillment & Assurance Solutions SBU and BT Business SBU. The current Subex Azure business, excluding business from British Telecom, will form the first SBU, the current Syndesis business will form the second SBU and the current Subex Azure business from British Telecom will form the third SBU. These SBUs will operate as independent revenue centers, each focused on delivering on its strategic plan and each leveraging its independent resources of account managers, domain experts and support specialists for superior product delivery and customer satisfaction.
Read the Business Standard and The Economic Times articles.
Rubamin acquires J&K Pigments
India’s largest zinc oxide maker, Rubamin, has acquired the Rs. 100 crore-J&K Pigments, another zinc oxide manufacturer located in the Kathua district of Jammu & Kashmir, for an undisclosed sum. The acquisition also provides the Rs. 360 crore-Rubamin with a base in J&K, where it enjoys tax incentives.
The acquisition would consolidate the company’s position as the largest zinc oxide producer in the country. Rubamin aspires to become one of the major producers of zinc oxide in the world by 2010. The Vadodara-based company has facilities in Halol, Daman and J&K. It also has a wholly owned subsidiary in Congo, which is engaged in mining, exploration and trading.
Rubamin is a top-notch export house, with exports around the world, and boasts of high-profile customers like Phelps-Dodge, Codelco and Bridgestone. Rubamin has been consistently rated one of the best vendors for these companies. Within the country, the company is a supplier to leading companies such as MRF, Apollo Tyre and Lubrizol. Rubamin has a nationally recognized R&D centre and apart from zinc oxide, it also manufactures cobalt salt. There are only a few companies in cobalt salt manufacturing.
Read the Business Standard article.
The acquisition would consolidate the company’s position as the largest zinc oxide producer in the country. Rubamin aspires to become one of the major producers of zinc oxide in the world by 2010. The Vadodara-based company has facilities in Halol, Daman and J&K. It also has a wholly owned subsidiary in Congo, which is engaged in mining, exploration and trading.
Rubamin is a top-notch export house, with exports around the world, and boasts of high-profile customers like Phelps-Dodge, Codelco and Bridgestone. Rubamin has been consistently rated one of the best vendors for these companies. Within the country, the company is a supplier to leading companies such as MRF, Apollo Tyre and Lubrizol. Rubamin has a nationally recognized R&D centre and apart from zinc oxide, it also manufactures cobalt salt. There are only a few companies in cobalt salt manufacturing.
Read the Business Standard article.
Pantaloon office stationery arm Future Office and US-based Staples sign stationery JV
Pantaloon Retail India has announced a joint venture between US-based Staples, Inc. and its new office products business unit, Future Office. The JV firm will serve businesses of all sizes through delivery as well as cash-and-carry locations, offering a wide range of office products from core office supplies to printers to computers.
The agreement establishes a platform for Staples to enter the $10 bn office products market in India and allows Pantaloon Retail to benefit from the industry expertise and sourcing network of the world’s largest office products company.
Read the Business Standard article for the comments of Ron Sargent, chairman & CEO, Staples and Kishore Biyani, MD & CEO, Pantaloon Retail India.
The agreement establishes a platform for Staples to enter the $10 bn office products market in India and allows Pantaloon Retail to benefit from the industry expertise and sourcing network of the world’s largest office products company.
Read the Business Standard article for the comments of Ron Sargent, chairman & CEO, Staples and Kishore Biyani, MD & CEO, Pantaloon Retail India.
Oracle, PE firms eye stake in 3i Infotech
Indian software products and services firm 3i Infotech is reportedly under the radar of Oracle and some other private equity funds. Currently, the ICICI Group holds a little over 48% in the firm. 3i Infotech is mainly dominant in the in the financial services and enterprise resource planning (ERP) space, apart from services.
The ICICI Group is reportedly keen on reducing its stake in 3i Infotech and that it has been in talks with private equity players. US software giant Oracle is also doing the rounds of being interested in a stake in 3i Infotech.
The ICICI group has been scouting for suitable buyers since the last few months. Its stake is held through two group companies, ICICI Bank and ICICI Strategic Investments Fund. Reserve Bank of India has asked all banks to progressively reduce their stakes in non-finance group companies. The group's stake has already come down marginally from 54% to 48% from March 2006 to September 2006.
Last year, 3i also acquired a Hyderabad-based firm, which gave it a presence in the growing anti-money laundering solutions space. Its flagship insurance product, PREMIA, also integrates with Oracle e-business suite and as recently as December 2006, it set up a centre of excellence for insurance in Chennai in partnership with Oracle. In this context, the acquisition makes strategic sense to Oracle.
3i has been delivering impressive numbers in the past few quarters. For the September quarter, it reported a profit of Rs. 23.2 crores on revenues of Rs. 149 crores. In fiscal 2006, it recorded a profit after tax of Rs. 58 crores and revenues of Rs. 424 crores. 3i was originally set up as a 100% subsidiary of the ICICI Group as ICICI Infotech. Later, the company changed its name to 3i Infotech and also went public.
Read The Economic Times article.
The ICICI Group is reportedly keen on reducing its stake in 3i Infotech and that it has been in talks with private equity players. US software giant Oracle is also doing the rounds of being interested in a stake in 3i Infotech.
The ICICI group has been scouting for suitable buyers since the last few months. Its stake is held through two group companies, ICICI Bank and ICICI Strategic Investments Fund. Reserve Bank of India has asked all banks to progressively reduce their stakes in non-finance group companies. The group's stake has already come down marginally from 54% to 48% from March 2006 to September 2006.
Last year, 3i also acquired a Hyderabad-based firm, which gave it a presence in the growing anti-money laundering solutions space. Its flagship insurance product, PREMIA, also integrates with Oracle e-business suite and as recently as December 2006, it set up a centre of excellence for insurance in Chennai in partnership with Oracle. In this context, the acquisition makes strategic sense to Oracle.
3i has been delivering impressive numbers in the past few quarters. For the September quarter, it reported a profit of Rs. 23.2 crores on revenues of Rs. 149 crores. In fiscal 2006, it recorded a profit after tax of Rs. 58 crores and revenues of Rs. 424 crores. 3i was originally set up as a 100% subsidiary of the ICICI Group as ICICI Infotech. Later, the company changed its name to 3i Infotech and also went public.
Read The Economic Times article.
Oberoi Constructions receives Rs. 675 crores from Morgan Stanley Real Estate Fund
Morgan Stanley Real Estate Fund has invested Rs. 675 crores (approximately $152 mn) in Mumbai-based Oberoi Constructions for an undisclosed stake. The private equity deal is said to be the largest in the Indian real estate sector. Fourteen other funds, including Blackstone, Carlyle, and GE, were in the race to acquire the stake in Oberoi Constructions. Morgan Stanley Real Estate Fund recently invested $67.4 mn in Mantri Developers. The fund looks at a return of more than 30% annually.
The company has projects lined up for Pune, Hyderabad and Bangalore for which it will acquire land. It has interests in both commercial and residential projects. It plans to diversify into shopping malls, hotels, hospitals and education centres. It has ongoing residential and commercial projects in Mumbai's suburbs - the Oberoi Mall in Goregaon, Oberoi Chambers and Garden Estate in Andheri, among others.
The real estate company has been valued at $1 bn by Kotak Mahindra Capital, the advisors to the deal. Anand Madduri, Executive Director, Morgan Stanley Dean Witter Asia, will be joining the Oberoi Constructions' board.
The real estate sector is growing at a whopping 35-40% and has seen large private equity deals in the last few months with nearly $350 mn in investments flowing into the sector. Siachen Capital has invested $100 mn in Bangalore-based Nitesh Estates, HDFC Real Estate has invested $35 mn in the Ansals IT City and Parks and another $31 mn in Pune-based developer Vascon Engineers. More than 20 funds are interested in the sector.
Read The Economic Times article for more details.
The company has projects lined up for Pune, Hyderabad and Bangalore for which it will acquire land. It has interests in both commercial and residential projects. It plans to diversify into shopping malls, hotels, hospitals and education centres. It has ongoing residential and commercial projects in Mumbai's suburbs - the Oberoi Mall in Goregaon, Oberoi Chambers and Garden Estate in Andheri, among others.
The real estate company has been valued at $1 bn by Kotak Mahindra Capital, the advisors to the deal. Anand Madduri, Executive Director, Morgan Stanley Dean Witter Asia, will be joining the Oberoi Constructions' board.
The real estate sector is growing at a whopping 35-40% and has seen large private equity deals in the last few months with nearly $350 mn in investments flowing into the sector. Siachen Capital has invested $100 mn in Bangalore-based Nitesh Estates, HDFC Real Estate has invested $35 mn in the Ansals IT City and Parks and another $31 mn in Pune-based developer Vascon Engineers. More than 20 funds are interested in the sector.
Read The Economic Times article for more details.
Norwegian company to buy MTR Foods for Rs. 350 crores
Norwegian food company Orkla Foods may turn out to be the acquirer of South-based MTR Foods. The deal size is said to be around Rs. 325-350 crores. Earlier, US spice company McCormick was widely tipped to take over MTR. However, the deal fell through at the last minute due to differences over structuring of the deal, particularly on certain intellectual property issues relating to the brand name.
Orkla is keen on acquiring MTR as it will provide a launch pad for Indian operations. The Norway-based company has presence in bakery, seafood, pizzas, pies, taste enhancers and snacks. In the past, Orkla has grown its international presence through acquisitions in Romania, Sweden, Denmark and Iceland. Orkla Foods is part of Orkla ASA, one of Norway’s largest listed companies with its core businesses being branded consumer foods, specialty materials and financial investments.
MTR’s brand pull is such that several large Indian corporates, including Tata Coffee, ITC, Godrej and several PE funds like Blackstone, Indivision and Actis had shown interest in the company. NM Rothschild was the investment banker for MTR, and had estimated a value of Rs. 300 crores on the company when it called for bids earlier this year. The Maiya family controls 59% stake in the company directly and indirectly, with JP Morgan holding 26% stake. Another fund, Aquarius, holds 14-15%. MTR’s portfolio comprises ready-to-eat, ready-to-cook food ingredients and spices.
Read The Economic Times article for more details.
Orkla is keen on acquiring MTR as it will provide a launch pad for Indian operations. The Norway-based company has presence in bakery, seafood, pizzas, pies, taste enhancers and snacks. In the past, Orkla has grown its international presence through acquisitions in Romania, Sweden, Denmark and Iceland. Orkla Foods is part of Orkla ASA, one of Norway’s largest listed companies with its core businesses being branded consumer foods, specialty materials and financial investments.
MTR’s brand pull is such that several large Indian corporates, including Tata Coffee, ITC, Godrej and several PE funds like Blackstone, Indivision and Actis had shown interest in the company. NM Rothschild was the investment banker for MTR, and had estimated a value of Rs. 300 crores on the company when it called for bids earlier this year. The Maiya family controls 59% stake in the company directly and indirectly, with JP Morgan holding 26% stake. Another fund, Aquarius, holds 14-15%. MTR’s portfolio comprises ready-to-eat, ready-to-cook food ingredients and spices.
Read The Economic Times article for more details.
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