The Switz Group, backed by the Khorakiwala family, has teamed up with Singapore’s sovereign wealth fund GIC to pursue a controlling stake in the premium patisserie chain, Theobroma, online news publisher MoneyControl reported on Monday.
The binding bids for Theobroma were reportedly recently submitted, with the Switz-GIC combine emerging as a strong contender. “With GIC’s backing, Switz Group gains financial muscle for a deal of this magnitude,” MoneyControl reported citing an unnamed source.
A Richly Valued Asset in High Demand
Theobroma, which began in Mumbai’s Colaba in 2004, has grown into a pan-India chain with over 190 outlets across 20 cities. Known for its brownies, cakes, and desserts, the chain has drawn interest from top private equity firms, including ChrysCapital, Bain Capital, and EQT. ChrysCapital has also reportedly expressed interest in acquiring Belgian Waffle Co., another dessert chain.
Theobroma counts ICICI Venture as a key investor, which entered in 2017 and holds approximately 42% of the company.
Earlier this year, Moneycontrol also reported that ICICI Venture and the Theobroma promoters hired Arpwood Capital to evaluate the sale of a controlling stake at a valuation of around Rs 3,500 crore.
Strategic Fit with Switz Group
Switz Group, with annual revenues exceeding $500 million and a presence in nine countries, operates brands like Mio Amore, Modern Oman Bakery, and Caravan Fresh. Known for its bakery and patisserie expertise, the group sees synergies with Theobroma’s operations, especially in scaling its business across Asia-Pacific.
Financial Growth and Outlook
Theobroma recorded a net profit of Rs 19.59 crore in FY23, a turnaround from its Rs 11 crore loss in FY22. At the same time, the companyโs revenue also grew from Rs 254.74 crore in FY22 to Rs 351.67 crore in the fiscal before.