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| Indian tea company Sapat eyes troubled Whittard |
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Indian tea company Sapat is eyeing Whittard of Chelsea, the upmarket British retailer that is on the brink of entering administration, reports The Times. Nikhil Joshi, the owner of Sapat, said today that he was following the situation at Whittard closely. "We are in a position to make an acquisition. We have looked at this brand in the past. For us, an entry into the UK would make sense." Last night, Whittard, which is backed by Landsbanki, the collapsed Icelandic bank, called in Ernst & Young as standby administrator after Landsbanki cut its funding lines, it is understood. It is thought that Sapat, which is expected to make a turnover of more than £100 million this year, has at least £20 million in cash on its books to spend on acquisitions. It was founded 110 years ago by Mr Joshi's grandfather and is one of India's largest growers and blenders of tea, but it has no brand recognition outside of its home market. Earlier this year, it made an unsuccessful £24 million bid to buy Clipper, the Dorset-based company that specialises in organic and Fairtrade brews. Mr Joshi also mentioned Taylors of Harrogate as a possible target. Sapat's advisors in Mumbai include KPMG. Mr Joshi said that Whittard, founded in 1886, had been neglected for decades, a situation that he said continued after Baugur bought the chain in 2005 for £20.5 million. Whittard, which has 500 employees, is likely to trade through the holiday period but Ernst & Young is in parallel talks with a number of bidders who are considering buying some of its 130 stores. In recent years, Indian companies have been especially active in the UK, one of the world's most lucrative markets for black tea. Tata bought Tetley in 2000 for £271 million, India's largest overseas acquisition. Earlier this year Tata made another tilt at the UK market when it bid £30 million for Clipper. It was outbid by Fleming Family and Partners. Three years ago, Apeejay Surrendra group acquired Typhoo for £80 million. Related Articles:
Last update: 23-12-2008 14:35
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