Mumbai, Sep 20 (IANS): Private equity firm Advent International will buy a controlling stake of 72.56 per cent in Eureka Forbes for approximately Rs 4,400 crore, it's parent Shapoorji Pallonji Group (SPG) has said.

Eureka Forbes is a household name in India actively present in the market with its range of vacuum cleaners and water purifiers. It is now a fully owned unit of Forbes and Co. ltd.

As per scheme worked out for the transaction, Eureka Forbes will be listed on the Bombay Stock Exchange (BSE) as a stand alone entity and subsequently Advent will purchase up to 72.56 per cent of the company's outstanding stock on a fully diluted basis from SPG.

The transaction will help SPG to deleverage its balance sheet while it will allow Advent to strengthen its portfolio of consumer companies in India.

The Advent deal is the culmination of negotiations started earlier this year. Advent International, Warburg Pincus, and Swedish home appliance maker Electrolux were earlier shortlisted for the sale process of Eureka Forbes.

SPG group stationed in the country's commercial capital Mumbai has diversified interests from real estate to power to financial services. The group had been looking to cut its debt and strengthen the balance sheet. The deals are part of this process.