Grupo Bimbo acquisition of Modern Food

Investec advised Everstone on its sale of Modern Food to Grupo Bimbo

Investec India acted as the Exclusive Financial Advisor to Everstone Capital on the sale of its bread and bakery business, Modern Foods (“the Company”) to Mexican bakery giant, Grupo Bimbo. Investec leveraged its cross-border presence to market the asset and executed the transaction which is operationally diversified across India during the peak of COVID-19.

Investec's role:

Key deal team members at Investec had previously advised Unilever on the sale of Modern Foods to Everstone.
We leveraged on our insights of the business and past deal experience to target the most appropriate investor set to create competitive intensity in the process, proactively tackle critical diligence bottlenecks and considerably shorten transaction timelines. Investec's network of cross border teams were able to secure interest from major global bread and bakery players.
It was a complex transaction which involved carve out of an existing business, independent sale of surplus assets and buy-out of minority partner to maximise value for the Seller.
Investec ran a tight, controlled process during the peak of COVID-19 and supported a multi locational diligence exercise to ensure transaction closure within 6 months from initial preparation.

About Grupo Bimbo:

Grupo Bimbo is the largest baking company in the world, operating in 33 countries, including India, and has a diversified portfolio of over 13,000 products and more than 100 renowned brands. The acquisition of Modern Foods provides Grupo Bimbo access to one of India’s most recognized baked goods brands with a complete range of bread and bakery products and a pan-India manufacturing and distribution footprint.

About Modern Foods:

Established in 1965 by the Government of India, Modern was the first branded bread in India. In the following decades, Modern became one of India’s best recognized brands with a full range of white, sweet, health and wellness breads, as well as value-added bakery products such as rusks, cakes, muffins, buns, and RTC products. Modern Foods’ bread and bakery products are manufactured and marketed nationally through a network of seven manufacturing plants and more than 80,000 outlets.

Modern Foods was resurrected in 2016, when Everstone Capital acquired Modern Foods from Hindustan Unilever Ltd., and relaunched the brand in June 2017. Everstone Capital identified the major opportunities that the brand offered and helped Modern strengthen its geographic coverage, expand the portfolio, and extend the brand to adjacent and newer categories, both organically and via acquisitions.

Client feedback:

“I have rarely seen bankers get into each aspect of the negotiation and you guys have done a fabulous and detailed work. This is global standard execution.”
- Bhavna Thakur, Everstone Capital (Head of Capital Markets and Exits)

“Congratulations to you Vikram and your team.. Honestly been a fabulous partnership. You and your team have been a partner not a banker and this made the biggest difference.”
- Roshini Bakshi, Managing Director, Everstone Capital