New York-based Warburg Pincus and Kedaara Capital are in separate acquisition talks with Watertec India, a Coimbatore-based bathroom and fitting accessories maker. According to a report by the Economic Times (ET), the prospective deal is expected to value Watertec at $450 million (Rs 3,500 crore).
Another private equity (PE) fund, Multiples Alternate Asset Management was also on the list to buy Watertec.
Founded by UMS Group, Watertec Malaysia and South Asian Investments, the company is known for making bathroom fittings, sanitaryware and other washroom accessories for both affordable and luxury categories.
The ET report suggests that the company has a pan-India distribution network with 15,000 channel partners and dealers, 1,800 suppliers, and 36 warehouses and branches. It is present in global markets and operates business in UAE, SAARC Countries, Egypt and South Asian countries. It has three manufacturing units in Coimbatore and is planning new hubs in Gujarat and Odisha.
The company has posted an operating profit (EBITDA) of Rs 250 crore ($30 million). Additionally, it bagged a revenue of Rs 1,200 crore in the last financial year (FY). The ET report has claimed that the company's 70 per cent of its total business comes from bath fitting and accessories. The rest of the revenue comes from the pipes and fitting segment and Sanitaryware.
However, both entities, who are into this prospective deal, have not denied commenting on this prospective acquisition. A spokesperson of Warburg Pincus declined to answer ET's queries.