Investment firm Everstone to buy Kenstar from Videocon arm

Investment firm Everstone Capital has agreed to buy Kenstar brand of air coolers and home appliances from Century Appliances, an associate of the Videocon Group, for an undisclosed sum.

Everstone said the Kenstar business will be run as an independent entity and would be managed by the existing team led by Rajiv Kenue. Media reports had pegged the Kenstar deal to be around Rs1,350-1,400 crore.

Everstone Capital's MD Avnish Mehra said the firm would further invest in Kenstar to strengthen its dealer network, product innovation and brand building.

The Kenstar sale is part of the Videocon Group's move to reduce its debt, which stands at over Rs40,000 crore.

Everstone had, in April 2016, bought Hindustan Unilever's bread and bakery business, sold under the `Modern' brand.

Everstone said it would also enter into a broader alliance with the Videocon Group for "manufacturing, cooperation on Kenstar brand and developing new products".

Other companies vying , including Crompton Greaves, were interested in acquiring Kenstar.

The Kenstar transaction also marks this year's first acquisition by a buyout firm in the consumer durables space. Last year, PE firms, Advent and Temasek had bought Crompton Greaves.