Carlyle to pick up minority stake in Varmora for $90-95 mn

Global private equity major Carlyle is all set to pick up a significant minority stake in tile maker Varmora Granito for USD 90-95 million, officials said on Tuesday.

Funds managed or advised by the Nasdaq-listed Carlyle Asia partners Growth will get the equity for the deal, a statement said.

Funding to the nearly three-decades-old, Ahmedabad-based company will help accelerate product innovation, channel partnerships, brand building and also acquisitions, the statement added.

At present, it portfolio consists of premium tiles, faucets and sanitaryware, which are sold through over 200 exclusive brand outlets in India and globally.

The PE fund feels positive about the residential sector, which coupled with rising per capita income, presents opportunities for branded building materials consumer player, the statement said.

''We are very impressed by the brand salience and consumer pull that Varmora has created. We believe this is driven by a differentiated product portfolio, strong pan-India distribution network and an exceptional management team,'' Carlyle India Advisors' co-head and managing director Amit Jain said.

Jain also said that the PE fund views Varmora as a platform for consolidation in the building materials space.

The company's chairman Bhavesh Varmora said Carlyle's business-building approach, trusted partnership mindset and deep global expertise made them the preferred partner.

The transaction is expected to close in by September this year after necessary approvals.