Global private equity firm Kohlberg Kravis Roberts and Co. will invest $150 million (about Rs 930 crore) in Mumbai-based polyester products manufacturer JBF Group and its global subsidiaries.
The PE firm will use a part of the investments to acquire about 20 per cent stake in listed entity JBF Industries. The remaining will be invested in zero-coupon convertible preference shares with 14.5 per cent voting rights in JBF Global Pte Ltd, its Singapore-based unlisted subsidiary.
“The funding provided by KKR will help JBF complete our ongoing projects. KKR’s support will enable JBF to grow our international presence and support the ‘Make in India’ campaign,” said Bhagirath Arya, Founder and Executive Chairman of JBF.
KKR will primarily make its investment from the KKR Special Situations Fund II, JBF Industries said in a statement.
Fortune Financial & Equities Services was the financial advisor to JBF Group.
JBF Group manufactures polyester products such as polyester chips, polyester yarn and films that are used in the fast-moving consumer goods, textile and packaging industries. The group has six manufacturing facilities across India, Bahrain, Belgium and the United Arab Emirates.
“This type of investment into a world-class company such as JBF is a great example of how KKR can support Indian manufacturing companies providing value to global customers,” said Sanjay Nayar, Member and Chief Executive Officer of KKR India.
The transaction is subject to shareholder and regulatory approvals, it added.
“This is a great milestone for KKR as we make our first investment in India from our new Special Situations Fund,” added Nikhil Srivastava, a Director at KKR and a member of the Special Situations team.
rajesh.kurup@thehindu.co.in