Adani Wilmar shares rise 6% as firm buys 80% stake in GD Foods, to buy 'Tops' maker in next 3 years

Adani Wilmar shares rose 6 percent on March 5 following its announcement about signing a definitive agreement to acquire GD Foods Manufacturing (India) Private Ltd. As of 11:00 am, Adani Wilmar shares were trading 6 percent higher at Rs 254.5, a rise of 6%.

The acquisition of the company behind the popular ‘Tops’ brand, GD Foods Manufacturing, will take place in phases. Adani Wilmar will be acquiring an 80% stake in GD Foods in the first tranche, while the remaining 20% stake will be purchased over the next three years. This strategic acquisition strengthens Adani Wilmar's presence in the processed food segment, expanding its footprint in the fast-growing FMCG space.

It hopes to fund the transaction using internal accruals or proceeds from the initial public offering of last year. The 'Tops' brand is among the top 3 players in the tomato ketchup and pickles category.

In an exchange filing, the company further said about the deal as, "The acquisition is subject to meeting customary closing conditions, with the first tranche is expected to close in 60 days. The transaction will be funded by internal accruals or IPO proceeds."