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Business News/ Companies / News/  Everstone completes acquisition of Modern brand from HUL
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Everstone completes acquisition of Modern brand from HUL

Everstone has also undertaken top-level management changes as part of its strategy to quadruple revenue to Rs1,000 crore over the next few years

Hindustan Unilever acquired a stake of 74% in Modern Foods in January 2000 when the government sold its holding. Two years later, it bought the remaining stake. Photo: Pradeep Gaur/MintPremium
Hindustan Unilever acquired a stake of 74% in Modern Foods in January 2000 when the government sold its holding. Two years later, it bought the remaining stake. Photo: Pradeep Gaur/Mint

New Delhi: Private equity firm Everstone Group on Friday said it has completed the acquisition and transfer of Hindustan Unilever Ltd’s (HUL) bread and bakery business under the “Modern" brand.

It has also undertaken top-level management changes as part of its strategy to quadruple revenue to Rs1,000 crore over the next few years.

Kuldip Kaura, former chief executive of cement maker ACC Ltd, has been appointed chairman of the board while former Cargill Foods India Ltd executive Aseem Soni has joined as chief executive with immediate effect.

The definitive closure of the deal for the acquisition of Modern for an undisclosed amount was announced by HUL and Everstone on Friday after both parties secured the necessary statutory approvals and clearances, Everstone said in a statement. The completion of the deal sees the sale and transfer of the Modern brand and business on an ongoing concern basis to Modern Food Enterprises Pvt. Ltd, as the business will now be known, it added.

“Modern is an iconic brand that virtually created the bread category in India and is synonymous with trust and quality for over 50 years. The Everstone Group will work with its management and board to make significant investments and deploy the Group’s operational expertise to unlock the brand’s full potential, as well as expand its portfolio and reach," said Sameer Sain, co-founder and managing partner at Everstone Capital Management.

“Modern is one of just two brands with a pan-India presence in the bread and bakery segment. Yet there are major opportunities to strengthen our geographic coverage, expand the portfolio, and extend our iconic brand to adjacent and newer categories, both organically and via acquisitions," said Soni. The company will focus on quality, affordability and health aspects, as well as entry into new categories, he added.

The company also said that two Everstone managing directors—Rajev Shukla and Deep Mishra—will also serve as board directors.

Ravindra Nair, Krishna Kumar and N.L. Mehta, currently senior general managers at Modern’s bakery division, are being elevated as executive directors with additional national responsibilities across Modern Foods, Everstone said in a statement.

HUL announced divestment of Modern on 9 September 2015. It did not disclose the size of the deal but said Modern’s revenue was around Rs250 crore.

HUL acquired a stake of 74% in Modern Foods in January 2000 when the government sold its holding. Two years later, it bought the remaining stake.

During the past few years, Everstone has made several investments in food and beverage firms, including Burger King India, Pan India Food Solutions Pvt. Ltd (Blue Foods), Capital Foods Ltd and Sula Vineyards.

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Published: 01 Apr 2016, 09:41 PM IST
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