US private equity firm Warburg Pincus has acquired a majority stake in Ebco Private Limited, a Mumbai-based manufacturer of furniture hardware and architectural hardware.
While the private equity firm did not disclose the financial terms of the deal, A Mint Report He said the US-based firm will acquire 75-80 per cent of the company at a valuation of Rs 3,000 crore.
Despite this significant acquisition, Ebco’s promoters (Geoffrey Nagpal and his family) will retain a substantial minority stake in the company and will remain actively involved in its future growth and operations.
Avendus Capital acted as exclusive financial advisor to Ebco.
What does Ebco do?
Founded in 1963, Ebco began as a tool manufacturer and then expanded into the furniture hardware segment in 1987.
Over the years, the company has emerged as one of India’s most established brands in the industry, offering a wide range of products, including bed and wardrobe accessories, kitchen systems, office furniture accessories and more.
It operates through three manufacturing plants in Maharashtra and has over 4,500 products sold through over 5,500 retail touchpoints across the country.
“We believe that the Indian furniture hardware and architectural accessories industry is poised for significant growth in the coming years, supported by favourable demographics driving real estate demand, increasing modularisation of furniture and rising home renovations,” said Anish Saraf, Managing Director, Warburg Pincus India.
Geoffrey Nagpal, Managing Director of Ebco, said: “The company is in an exciting phase of growth and we are delighted to partner with Warburg Pincus at this stage. This partnership will enable the company to take advantage of the strong growth prospects of the industry and deepen its presence in all parts of the country.”
Warburg Pincus’ strategic investment
Founded in 1966, Warburg Pincus is known for its strategic investments in growth-oriented companies across a variety of industries, including technology, healthcare and financial services.
The firm aims to support its portfolio companies by leveraging its extensive industry knowledge and global network, thereby generating long-term value and fostering innovation.
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