India: Agro Tech Foods to acquire Del Monte Foods

Agro Tech Foods (ATFL), a confectionery and snacks firm backed by private equity firm Samara Capital, has announced it has entered into an agreement to acquire Del Monte Foods in a 1,300 crore INR ($156 million) share swap deal with Bharti Enterprises and Del Monte Pacific.

Following the acquisition, Del Monte Foods will become a wholly owned subsidiary of Agro Tech. Bharti Enterprises will hold a 21% stake, with Agro Tech securing an exclusive licence for the Del Monte brand in India.

As part of the transaction, ATFL will acquire access to Del Monte Foods’ manufacturing and R&D facilities in Hosur, Tamil Nadu, and Ludhiana, Punjab.

Commenting on the move, Bharti Enterprises joint managing director Harjeet Kohli said: “The plan is to aggregate the food business of Agro Tech, which has Sundrop edible oil and Act II popcorn, with that of Del Monte, which offers branded processed food and beverages. While both businesses can combine and grow organically, there is nothing preventing the company from acquiring brands in adjacent spaces”.

ATFL CEO and executive director Asheesh Kumar Sharma added: “We intend to deliver maximum value to all stakeholders through our mission of creating innovative and convenient food solutions for the modern consumer”.

The deal is subject to regulatory approvals and is expected to be completed within nine months.

Source: Economic Times / Financial Express