B'lore firm buys world's largest rose co
Karuturi Networks, a little know B'lore firm, is close to acquiring the Netherlands-based Sher for about Rs 220 cr.
By Reeba Zachariah, TNN |
MUMBAI: A day after Valentine’s Day, there’s news of a deal that’ll make the global Indian takeover come out smelling of roses. Next Valentine’s Day, when lovers and spouses gift roses across the world, chances are most of the flowers will have an Indian imprint.
Karuturi Networks, a little known Bangalore company , is close to acquiring the Netherlands-based Sher, the world’s largest producer and supplier of roses, for about $50 million (Rs 220 crore) to emerge as the global leader in roses. Sher’s greenhouses in the Netherlands, Kenya and Ethiopia produce 600 million roses annually.
When contacted, Ramakrishna Karuturi , MD of Karuturi Networks, confirmed that his company was about to wrap up the deal. The acquisition will be funded through internal accruals and the proceeds of a $25 million foreign currency convertible bond issue. UTI Bank and the Londonbased Silverdale Services are involved in the deal.
It all began on a Valentine’s Day 12 years ago when Karuturi, a mechanical engineer, was sniffing around Bangalore for roses for his wife. Finding none, he decided to step out of the cable business he was running and plant high-value stem roses for a living. He set up Karuturi Networks, which now processes 12 million roses annually.
Karuturi Networks has 60 hectares of greenhouses in India and Ethiopia for rose cultivation. Apart from the European company’s facilities, Karuturi will get a strong brand in Sher.
Karuturi Networks, a little known Bangalore company , is close to acquiring the Netherlands-based Sher, the world’s largest producer and supplier of roses, for about $50 million (Rs 220 crore) to emerge as the global leader in roses. Sher’s greenhouses in the Netherlands, Kenya and Ethiopia produce 600 million roses annually.
When contacted, Ramakrishna Karuturi , MD of Karuturi Networks, confirmed that his company was about to wrap up the deal. The acquisition will be funded through internal accruals and the proceeds of a $25 million foreign currency convertible bond issue. UTI Bank and the Londonbased Silverdale Services are involved in the deal.
It all began on a Valentine’s Day 12 years ago when Karuturi, a mechanical engineer, was sniffing around Bangalore for roses for his wife. Finding none, he decided to step out of the cable business he was running and plant high-value stem roses for a living. He set up Karuturi Networks, which now processes 12 million roses annually.
Karuturi Networks has 60 hectares of greenhouses in India and Ethiopia for rose cultivation. Apart from the European company’s facilities, Karuturi will get a strong brand in Sher.
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