India-based private equity firm Everstone Group has completed the acquisition of Modern Foods, a bakery business of the Hindustan Unilever Limited (HUL).
Following the acquisition, Everstone aims to triple the brand's revenue to Rs 10bn ($151m).
The company has also restructured its top-level executives by bringing in new CEO.
Everstone has appointed Aseem Soni, who is an ex-Cargill Foods executive, as the company's new chief executive with immediate effect and Kuldip Kaura as chairman of the board.
Kuldip Kaura was a former managing director and chief executive of ACC Cement apart from being a senior director with the Everstone Group.
Everstone had announced the acquisition last September for reported Rs 2.5bn ($37.8m).
HUL and Everstone have been working to obtain the necessary approvals to complete the transaction since it was agreed upon in September 2015. HUL has been managing the operations until the completion of the transaction.
At the time of entering into the agreement, HUL CEO and managing director Sanjiv Mehta had said: "Modern is an iconic brand which has been delighting consumers over the years through its range of high quality bread and value added bakery products.
"Since its acquisition in 2000, HUL has strengthened the Modern business, driven consistent topline growth and significantly improved profitability. Having turned around the business and built a sustainable growth model, we believe that the sale to Everstone will unlock the full potential of the Modern brand".
This is the third ownership change for Modern foods which was established by the Indian government in 1965 as Modern Bakeries India, as the country's first bread company in Kazhikundram, near Tidel Park in Tamil Nadu state of India.
The company owns 14 bakery units in 13 Indian cities including Mumbai, Bengaluru, Chennai, Kochi, Kolkata and Hyderabad and 40 franchisees. It sells breads, cooking oils, flour, fruit pulps, fruit juices, beverage concentrates and energy food.
In January 2000, 74% stake of the company was sold to Hindustan Lever for Rs 1.05bn ($15.8m). Hindustan Lever was the sole bidder and it was the first privatization of a central public sector unit. In November 2002, HLL took over the remaining 26% stake for Rs 440m ($6.65m) with the government's 'put option'.
Image: Everstone completes purchase of Modern bakery business. Photo: Courtesy of amenic181/FreeDigitalPhotos.net.
