The VG Siddhartha-led Amalgamated Bean Coffee Trading (ABCTL)is to expand and develop ABCTL’s retail business, the key component of which is Cafe Coffee Day, the country’s largest chain with 480 cafes in India.It is closing a $95 million (Rs 340 crore) fund-raising from Deutsche Bank and Templeton Darby International for the expansion.
The transaction, which has been in the making for a while, is likely to be wrapped up soon. Mr Siddhartha, is a pioneer of India’s coffee cafe culture and won ET’s Entrepreneur of the Year Award in 2003.
The two private equity investors together are expected to take a little over a 10% stake in ABCTL’s retail business, whose enterprise value is close to $600 million with debts included, sources say. It is believed that Deutsche Bank will invest $70 million with Templeton Darby International bringing in the remaining $25 million.
Read more in The Economic Times article.
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