Just after the valentine day, the global Indian takeover story has got another gift in the form of rose. There is a deal in-waiting and after that most of roses in world will have an Indian imprint now.
Karuturi Networks, a low-profile Bangalore company, is all set to acquire Holland-based Sher, the world’s largest producer and supplier of roses for $40 million.
The deal is a big move in the $80-billion floriculture space and Karuturi will become the largest rose grower in the world.
Sher’s greenhouses in Holland, Kenya and Ethiopia produce 600 million roses annually.
Later, Ramakrishna Karuturi, MD of Karuturi Networks has confirmed the takeover process The Company has recently raised a GDR issue of $25 million.
The money will part-fund our in-organic growth. UTI Bank is ready for external commercial borrowing of $30 million. We are getting another ECB from a Spanish bank, while the rest of the funds will come from internal accruals.
The success story had started some on Valentine’s Day 12 years ago. Karuturi, a mechanical engineer, was snuffling around Bangalore for roses to take to his wife.
He didnot get any rose and then decided to step out of the cable business he owns and plant high-value stem roses for a living.
Now, the Karuturi Networks processes 12 million roses annually and all set to whiff of the global scene.
Karturi said on this deal;
The expansions will make us the leader in the world flora industry in all verticals like fresh cut flowers, plant material, breeding and green house infrastructure by 2010.
Currently, Karuturi Networks has 60 hectares of land in India and Ethiopia under rose cultivation. It will also get a strong brand in Sher.
Now, the company is negotiating with Fisher, an Ohio-based plant material and seedling company, for a $30-million acquisition.