Agro Tech Foods, backed by private equity firm Samara Capital, is set to acquire Del Monte Foods Pvt Ltd -- a joint venture between Bharti Enterprises and Del Monte Pacific -- in a share swap deal valuing the joint venture at over Rs 1,300 crore.
The acquisition will see Agro Tech issue 1.33 crore shares at Rs 975.5 apiece to the current shareholders of Del Monte Foods — Bharti Enterprises and Del Monte Pacific — as consideration for their ownership stake.
Del Monte will become a wholly owned subsidiary of Agro Tech. Bharti Enterprises will become the second largest shareholder in Agro Tech Foods, with nearly 21 percent, after the deal is completed.
Additionally, Agro Tech Foods, through Del Monte Foods, will acquire an exclusive, perpetual license for the Del Monte brand in India.
Agro Tech shares fell 4 percent to Rs 995 on the NSE on November 14. The stock has gained 28 percent over the past year, bringing the company’s market capitalisation to Rs 2,500 crore.
Bharti’s journey in the food sector began in 2004 with the establishment of FieldFresh Foods, a joint venture with global investment firm E.L. Rothschild, initially focused on producing and exporting fresh fruits and vegetables.
In 2007, Singapore-based Del Monte Pacific Ltd acquired a 40.1 percent stake in FieldFresh for $20.8 million, pivoting the venture toward processed foods and introducing products like fruit juices, ketchup, olive oil, pasta, mayonnaise, and canned fruits to the Indian market. In 2021, the company rebranded as Del Monte Foods Pvt Ltd.
Agro Tech Foods views this acquisition as a strategic expansion of its processed foods portfolio. Known for Sundrop and Act II brands, Agro Tech aims to leverage Del Monte’s established product line to serve both retail and institutional clients, including quick-service restaurants and airlines.
The acquisition, pending shareholder and regulatory approvals, is expected to conclude within nine months following clearance from the Competition Commission of India.
In related developments, Agro Tech Foods announced several strategic changes to strengthen its brand and corporate structure. The board has approved a proposal to rename Agro Tech Foods as “Sundrop Brands Ltd,” reflecting its focus on consumer-branded packaged foods.
Additionally, key leadership changes were announced: Nitish Bajaj will join as Group Managing Director, bringing extensive experience in consumer products, while Om Prakash Manchanda has been appointed as Non-Executive Independent Director. Asheesh Kumar Sharma, currently Managing Director and CEO, will transition to the role of Executive Director and CEO for the Sundrop and Act II business lines.
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