Bain Capital in talks to buy controlling stake in ice-cream maker, Vadilal: Report

Private equity firm Bain Capital is reportedly in talks to buyout home-grown ice-cream maker Vadilal. Bain Capital is eyeing a controlling stake in the combined entity of Vadilal Industries, Vadilal Enterprises and Vadilal brand. 

According to a report in Moneycontrol, Arpwood Capital has been in talks to buy a stake in Vadilal and had given an offer to the promoters of the ice-cream maker. 

Vadilal has been valued at over Rs 3,000 crore as per the deal. 

Shares of Vadilal Industries jumped 10.87 per cent to hit a high of Rs 3,076.95 on BSE. Shares of Vadilal Enterprises closed at Rs 3,805.10, down 1.67 per cent, following the buyout reports. 

This is not the first time the promoters of Vadilal have explored a stake sale. Arpwood Capital had earlier offered to buy a stake in the company. The sale was delayed due to a promoter dispute. 

According to the report, Vadilal Industries had taken shareholder approval in December 2022. 

The food and beverage company had humble beginnings in 1926 with the first outlet in Ahmedabad. Its origins can be traced back to the Vadilal Soda Fountain outlet in 1926.

Vadilal manufactures ice-cream,  flavoured milk, frozen dessert, other dairy products, as well as processes and exports processed food products such as frozen fruits, vegetable, pulp, ready-to-eat and ready-to-serve products etc. 

The company has two ice-cream production facilities - one in Gujarat and the other in Uttar Pradesh.

Also read: Vadilal Industries shares rally 11% on report Bain Capital may buy controlling stake