Buyout (LBO, MBO, MBI) • Financial Services

Baring Private Equity Partners India and Kotak Private Equity Group Acquire Muthoot Finance

On July 29, 2010, private equity firms Baring Private Equity Partners India and Kotak Private Equity Group acquired financial services company Muthoot Finance for 157M INR

Acquisition Context
  • This is Baring Private Equity Partners India’s 1st and Kotak Private Equity Group’s 2nd transaction in the Financial Services sector.
  • This is Baring Private Equity Partners India’s 3rd and Kotak Private Equity Group’s 0th largest (disclosed) transaction.
  • This is Baring Private Equity Partners India’s 8th and Kotak Private Equity Group’s 21st transaction in India.
Investment Fate
  • Muthoot Finance went public in 2011.

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M&A Deal Summary

Date July 29, 2010
Target Muthoot Finance
Sector Financial Services
Buyer(s) Baring Private Equity Partners India
Kotak Private Equity Group
Deal Type Buyout (LBO, MBO, MBI)
Deal Value 157M INR

Target Company

Muthoot Finance

Kochi, India
Muthoot Finance provides personal and business loans secured by gold jewelry, or gold loans, primarily to individuals and micro finance. Muthoot Finance was founded in 1887 and is based in Kochi, Kerala.
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Buyers Overview 2

DESCRIPTION

Baring Private Equity Partners India (BPEP India) is an India-focused private equity firm. The Group targets mid-market transactions and looks for companies with excellent management, recognized brands, strong distribution, and sustainable growth/cash-flows. Sectors of interest include information technology, life science, banking, financial services, insurance, energy, infrastructure, and consumer goods. The Firm will consider both control and minority investment positions. BPEP India was originally part of the Baring Private Equity Partners Group and became independent from the group and parent ING in 2004. BPEP India is based in Gurgaon.


Deal Context for Buyer #
Overall 12 of 17
Sector: Financial Services 1 of 2
Type: Buyout (LBO, MBO, MBI) 4 of 4
Country: India 8 of 13
Year: 2010 2 of 4
Size (of disclosed) 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-07-20 PharmARC Analytic Solutions Pvt.

Bangalore, India

PharmARC is a global sales and marketing analysis company, dedicated to the pharmaceutical industry and allied consultants worldwide. It provides high-end sales and marketing analytics and business intelligence services. The company believes it can enhance the value of customer projects at a significantly economical cost while retaining excellence and accuracy. Its customers include 12 of the top 20 Pharmaceutical companies in the world.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-08-16 Shilpa Medicare

Raichur, India

Shilpa Medicare is a manufacturer and exporter of high-quality Active Pharmaceutical Ingredients, Intermediates, and specialty chemical products to major pharmaceutical companies across the globe. Shilpa Medicare was founded in 1987 and is based in Raichur, Karnataka.

Buy -
Buyer

Kotak Private Equity Group

Mumbai, India

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 1.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Kotak Private Equity Group (KPEG) is the private equity investment arm of financial services firm, Kotak Mahindra Group. KPEG looks to invest $20 to $40 million in a variety of mid-sized Indian companies to support expansion, acquisitions, or buyouts KPEG targets businesses with strong management and growth potential operating in fragmented industries. Sectors of interest include life science, retail, media/entertainment, light manufacturing, agriculture, food processing, healthcare, distribution, and IT/software. Kotak is based in Mumbai.


Deal Context for Buyer #
Overall 21 of 26
Sector: Financial Services 2 of 3
Type: Buyout (LBO, MBO, MBI) 3 of 3
Country: India 21 of 26
Year: 2010 4 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-07-28 Diamond Power Infrastructure

Ahmedabad, India

Diamond Power Infrastructure is a fully integrated power solutions company that manufactures transmission and distribution equipment and provides turnkey EPC services. The company's comprehensive portfolio of products includes power cables, power and distribution transformers, transmission and distribution conductors and transmission towers. Diamond Power Infrastructure was founded in 1970 and is based in Ahmedabad, Gujarat.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2010-08-01 Paramount Airways

Chennai, India

Paramount Airways is a full-service carrier operating in South India with a unique model of offering frequent connectivity between two destinations with business class service at economy prices. The airline operates a fleet of five Embraer 70-75 seater jets connecting eight destinations with about forty two flights per day and enjoys market leadership in these sectors. Paramount Airways was founded in 1998 and is based in Chennai, Tamil Nadu.

Sell -