Diversified business entity ITC Ltd on Monday announced acquisition of spices manufacturer Sunrise Foods Private Ltd (SFPL) in an all-cash deal valued at Rs 2,150 crore. According to the company, it has acquired shares of SFPL at an "upfront consideration of Rs 2,150 crores on a cash-free, debt-free basis".
"In addition, the sellers are entitled to contingent consideration of an amount not exceeding Rs 150 crore, which is payable upon Sunrise achieving mutually agreed operational and financial milestones, over a period of two years," ITC said in a regulatory filing.
SFPL is a Kolkata-based family-owned company engaged primarily in the business of spices, and this acquisition would help ITC augment its portfolio in the segment where it is present with its brand Aashirvaad.
"The company has acquired 100 per cent of the equity share capital of Sunrise on July 27, 2020," said ITC.
Consequent to it, Sunrise and its two subsidiaries, Sunrise Sheetgrah Private Ltd and Hobbits International Foods Pvt Ltd, have become wholly-owned subsidiaries of ITC, it added.
Earlier on May 24, ITC had announced it would acquire SFPL.
Sunrise is a market leader in eastern India in the fast-growing spices category and has a brand legacy of over 70 years.
"ITC's Aashirvaad range of spices has a strong presence in Telangana and Andhra Pradesh and the company is one of India's leading producers and exporters of high-quality food-safe spices. The acquisition will augment the company's product portfolio and is aligned to ITC's aspiration to significantly scale up its Spices business and expand its footprint across the country," it said.
Moreover, Sunrise consumer connect in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company's agribusiness and its pan-India distribution network, will provide "significant value creation opportunities" for the company, ITC said.
In FY 2019-20, Sunrise had a turnover of Rs 591.50 crore.