Malaysia-based private equity firm Navis Capital Partners has agreed to sell all its assets in fast-food restaurant chain Nirula's to A2Z Excursions (A2Z), a privately-held business group involved in the hotels and real estate business, run by entrepreneur Pradeep Chadha, according to Nicholas Bloy, Managing Partner,
Navis Capital Partners. Bloy declined to comment on the size of the deal, but two persons with knowledge of the developments said the acquisitions was likely in the range of Rs 60-80 crore, though the number could not be independently verified. "The biggest asset is the Nirula's hotel property in Delhi-NCR, it is a key real estate asset. The restaurants by themselves did not get a very high valuation," one of the persons said, according to The Economics Times report by Ratna Bhushan. Nirula's sales are estimated at Rs 100 crore. The 77-year old restaurant chain operates largely on the franchisee structure, mainly in the Northern states. The chain's 80-odd stores include dine-in restaurants, pastry shops, ice-cream parlours, hotels and coffee shops. The average holding period for most PE investments is six years and Navis is completing that duration this year. As per the report, post acquisition, Navis had invested Rs 30 crore on Nirula's directly, while another Rs 20 crore was infused by the franchisees for store rollouts, equipment and kitchens. The PE firm had also been backing Nirula's expansion into Tier-II and Tier-III cities such as Meerut, Mussoorie and Patna.
Source
Navis Capital Partners. Bloy declined to comment on the size of the deal, but two persons with knowledge of the developments said the acquisitions was likely in the range of Rs 60-80 crore, though the number could not be independently verified. "The biggest asset is the Nirula's hotel property in Delhi-NCR, it is a key real estate asset. The restaurants by themselves did not get a very high valuation," one of the persons said, according to The Economics Times report by Ratna Bhushan. Nirula's sales are estimated at Rs 100 crore. The 77-year old restaurant chain operates largely on the franchisee structure, mainly in the Northern states. The chain's 80-odd stores include dine-in restaurants, pastry shops, ice-cream parlours, hotels and coffee shops. The average holding period for most PE investments is six years and Navis is completing that duration this year. As per the report, post acquisition, Navis had invested Rs 30 crore on Nirula's directly, while another Rs 20 crore was infused by the franchisees for store rollouts, equipment and kitchens. The PE firm had also been backing Nirula's expansion into Tier-II and Tier-III cities such as Meerut, Mussoorie and Patna.
Source