Global private equity (PE) firm Carlyle said it has entered into a strategic partnership with tiles and bathware maker Varmora Granito Pvt. Ltd through an acquisition of a significant minority stake in the company.
Equity for this transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners Growth, the PE firm said in a statement. Financial terms of the transaction were not disclosed.
Established in 1994, Varmora is a founder-led tile and bathware brand. The company’s product portfolio includes premium tiles, faucets and sanitaryware, and its products are sold through a distribution network that includes over 200 exclusive brand outlets in India and globally. The investment from Carlyle will be used by Varmora to boost its spend on brand building and digital marketing, deepen its distribution network, and augment product innovation and capacity.
“We are very impressed by the brand salience and consumer pull that Varmora has created. We believe this is driven by a differentiated product portfolio, strong pan-India distribution network and an exceptional management team. We are excited to partner with Bhavesh Varmora, the Varmora brothers and their entrepreneurial team to help accelerate the next phase of the company’s growth journey as a leading consumer-oriented business. We also view Varmora as a platform for consolidation in the fast-growing building materials space," said Amit Jain, managing director and co-head, Carlyle India Advisors.
Investment bank Steer Advisors served as transaction advisor to Varmora. The transaction is expected to close in the second quarter of fiscal 23, subject to customary closing conditions.
“Their (Carlyle) business-building approach, trusted partnership mindset and deep global expertise in this space made them our preferred partner in this exclusive transaction. We are very excited and confident about the growth opportunity that lies ahead for Varmora and are looking forward to leveraging Carlyle’s global consumer expertise for executing our value creation initiatives," said Bhavesh Varmora, Chairman, Varmora Granito Pvt. Ltd.
