India: Conagra Brands to divest controlling stake in Agro Tech Foods

Conagra Brands, a leading US food manufacturer, has announced that its subsidiary has entered into an agreement with funds advised by Convergent Finance and Samara Capital to divest its 51.8% ownership stake in Agro Tech Foods, a food company based in Mumbai, India.

Agro Tech Foods is a manufacturer of ready-to-cook snacks, ready-to-eat snacks, spreads & dips, breakfast cereals and chocolate confectionery.

Commenting on the move, Convergent Finance managing partner Harsha Raghavan said: “Agro Tech Foods’ category-defining brands have been beloved household names for the past three decades, thanks to the company’s relentless focus on quality, innovation, and customer delight. As India’s rapidly-growing consumer class expands and discretionary income levels continue to rise, we will expand ATFL’s distribution reach and product range, thereby transforming it into the country’s leading packaged and snack food platform”.

The transaction is expected to be completed by the end of calendar year 2024, subject to customary regulatory approvals. Financial terms of the deal were not disclosed.

Source: Convergent Finance / Conagra Brands / Agro Tech Foods