Carthyle to acquire minority stake in Varmora Granito for $90-95 million

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Carthyle to acquire minority stake in Varmora Granito for $90-95 million

Private equity major Carlyle is poised to pick up a significant minority stake in Varmora Granito for USD 90 -- 95 million, officials said on Tuesday.

The equity for the deal will be provided by the funds managed or advised by the Nasdaq-listed Carlyle Asia partners.

The statement said that funds will be provided to the nearly three-decades old, Ahmedabad-based company to accelerate product innovation, channel partnerships, brand building and also acquisitions.

Its portfolio consists of premium tiles, faucets and sanitaryware, sold through over 200 exclusive brand outlets in India and globally.

The PE fund feels positive about the residential sector, which is coupled with rising per capita income, presents opportunities for branded building materials consumer player, the statement said.

We are very impressed by the brand salience and consumer pull that Varmora has created. Carlyle India Advisors' co-head and managing director Amit Jain said the company believes that this is driven by a differentiated product portfolio, strong pan-India distribution network and an exceptional management team.

Jain said that the PE fund views Varmora as a platform for consolidation in the building materials space.

The company's chairman, Bhavesh Varmora, said Carlyle's business-building approach, trusted partnership mindset and deep global expertise made them the preferred partner.

After approvals, the transaction is expected to close by September this year.