Inbrew, TPG may team up for Imperial Blue acquisition

Private equity group TPG is reportedly evaluating a collaboration with Inbrew Beverages to acquire Imperial Blue, India’s third-largest whisky brand, from French giant Pernod Ricard. At least two special situations funds—Davidson Kempner and Cerberus Capital Management—are also in discussions to provide financing.

The consortium is expected to value the brand, which created a cult following with its “Men will be Men” advertising campaign, at $350 million-$375 million or 15-18 times its FY24 EBITDA of $24 million-$28 million. This valuation is significantly lower than the $600 million-$700 million range that Pernod is said to have originally sought, primarily due to eroding margins and declining market share caused by high input costs that are affecting the brand’s performance.

TPG and Inbrew, led by serial entrepreneur Ravi S. Deol, submitted competing non-binding bids for the brand last year.