Private equity firm Everstone Group on Monday said it has agreed to buy home appliances brand Kenstar from debt-ridden Videocon group.
The Videocon group, which is reeling under a debt of over Rs 40,000 crore, has been looking for buyers for its various assets, including Kenstar, in a bid to pare its debt. “Everstone Group (Everstone) has agreed to buy Kenstar,” the company said, adding the sale includes the purchase and transfer of the brand and businesses under the brand on a going concern basis including a state-of-the-art manufacturing facility, as well as assets from Century Appliances ltd (an associate of the Videocon Group).
The company, however, did not disclose the deal size. But the transaction, as per various reports, is pegged at a valuation of about Rs 1,300 crore.
The transaction is subject to statutory approvals and specific clearances. The deal, which has seen negotiations for around an year, saw interests from various companies. “Under the agreement, the existing management team at Kenstar, led by business head Rajiv Kenue, will continue to manage the business,” the investment firm said.