American PE firm Warburg Pincus buys majority stake in India's furniture firm Ebco

US-based private equity firm Warburg Pincus has acquired a majority stake in Ebco Private Limited, a Mumbai-based manufacturer of furniture fittings and architectural hardware. 

While the PE firm did not disclose the financial terms of the deal, A Mint report said that the US-based firm will acquire 75-80% of the company at a valuation of Rs 3,000 crore.

Despite this significant buyout, Ebco’s promoters—Geoffrey Nagpal and family—will retain a substantial minority stake in the company and remain actively involved in its future growth and operations.

Avendus Capital was the exclusive financial advisor to Ebco.

What does Ebco do?

Founded in 1963, Ebco started as a tool maker and later expanded into the furniture hardware segment in 1987.

Over the years, the company has become one of India's most established brands in the industry, offering a wide range of products, including bed and wardrobe fittings, kitchen systems, office furniture accessories, and more.

It operates through three manufacturing plants in Maharashtra and boasts over 4,500 products sold via more than 5,500 retail touchpoints across the country.

“We believe that the Indian furniture fittings and architectural hardware industry is poised for significant growth over the next several years, underpinned by tailwinds from favourable demographics fuelling real estate demand, rising furniture modularization, and increasing home renovations," said Anish Saraf, managing director of Warburg Pincus India.

Geoffrey Nagpal, Managing Director of Ebco, said, “The Company is at an exciting phase of growth, and we are thrilled to partner with Warburg Pincus at this stage. This partnership will enable the Company to capitalize on the strong industry growth prospects and deepen its presence in every part of the country."

Warburg Pincus’s Strategic Investment

Warburg Pincus, established in 1966, is known for its strategic investments in growth-oriented companies across various sectors, including technology, healthcare, and financial services.

The firm aims to support its portfolio companies by leveraging its extensive industry knowledge and global network, thereby generating long-term value and fostering innovation.