Inbrew and Tilaknagar race to buy Imperial Blue, eyeing $500 million each in private debt

Two major Indian liquor companies — Inbrew Beverages and Tilaknagar Industries — are competing to acquire Pernod Ricard’s popular whiskey brand Imperial Blue, according to people familiar with the matter.

Both firms are reportedly looking to raise about $500 million each from private credit funds to finance their bids. The deal could value Imperial Blue between $600 million and $650 million, making it one of the biggest buyouts in India’s alcoholic beverages sector in over ten years.

Competing bids backed by private credit

Sources say Inbrew and Tilaknagar have already approached several private credit funds. These funds have given financing commitments to both bidders, since only one of them will eventually move forward depending on who wins the acquisition.

“Many private credit funds have agreed to support both companies, but only the winner will actually draw the loan,” said a fund manager involved in the process.

Banks supporting the deal

According to the same sources:

• Avendus Capital is advising Tilaknagar Industries on its bid.

• Standard Chartered Bank is working with Inbrew Beverages.

Both banks, along with the two liquor companies, did not comment when contacted by media for confirmation.

Imperial Blue: a major brand

Imperial Blue is India’s third-largest whiskey brand by sales, and has been a part of French spirits giant Pernod Ricard’s portfolio. Selling it could help Pernod Ricard focus on its other premium brands in India.

Industry experts expect the acquisition to be finalised in the next month, as talks have reached an advanced stage.

If successful, this will be the largest deal in India’s alcoholic beverage industry since Diageo’s $1.9 billion purchase of United Spirits in 2013.