Blackstone to acquire 51% of Haldiram’s.

American Investment Firm Blackstone Inc is said to be planning an offer of about 40,000 crore for a controlling 51% stake in the famous Indian snack brand Haldirams. The extended agreement aims to establish Blackstone’s entry into India’s lucrative snacking segment. In this transaction, Haldiram’s would be valued between 70,000-78,000 crore. The final offer to the promoters of the company will therefore depend on the results of the due diligence process.

Blackstone will get controlling stake and perpetual license for operating Haldiram’s product business with the proposed deal. Issues related to cafés and brand permit which used to hinder the arrangement have been solved, while brand freedoms and eatery activities are with the Agarwal family. A broker familiar with the case observed that these problems have recently lengthened the arrangement and valuations, though with their objective, the arrangement is expected to conclude shortly. The new owners will be paying annual royalties to the Haldiram family for being allowed to use the brand.

EY is conducting the due diligence on Blackstone. It involves a consortium where Singapore’s GIC and Abu Dhabi Venture Authority (ADIA) are other partners, although Blackstone has the largest share. Despite earlier information about valuation crosses and expired talks, a Blackstone representative confirmed that a fundamental offer was made in May 2024.

Haldiram’s President Krishan Kumar Chutani did not wish to comment. Blackstone’s proposed, valued at ₹78,000 crore for 51% stake is believed to be the best deal received, which marks a significant progress in Haldiram’s ongoing negotiations with potential buyers since September 2023.