India's largest biscuits company Parle Products is in talks with private equity firm Bridgepoint to consider buying dr Gerard, the second largest biscuits producer in Poland, according to media reports.
However, there is still no guarantee if Parle's negotiations will lead to a transaction, reports said. Bridgepoint declined to comment on the specifics but confirmed that a formal sale process was ongoing. Parle did not comment on the development.
Bridgepoint appointed Houlihan Lokey for the dr Gerard sale earlier this year but the ongoing Russia-Ukraine war and the geopolitical volatility in Europe slowed the process considerably.
The Polish company, launched in 1993, has a portfolio of over 200 biscuits and salty snacks and two production facilities in Poland. Its core business is in cookies and chocolate products.
dr Gerard is valued at Rs 1,000- 1,200 crore, though reports stated it could be as high as nearly Rs 1,600-2,400 crore.
According to the reports, the initial discussions with Parle were focused on contract manufacturing opportunities but then Bridgepoint decided to put the company on the block.
If successful, this will be the first acquisition by Parle, a conservative company with focus on building brands instead of buying them.
For a record 10 years in row, Parle has topped the rankings for most chosen FMGG brands, according to a report by Kantar India. It is followed by Amul, Britannia, Clinic Plus and Tata Consumer Products in the latest 2021 report, which ranks the most chosen FMCG brands based on consumer reach points.
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