ITC acquires Sunrise Foods in all-cash deal for Rs 2,150 crore
BusinessToday.In July 28, 2020
Homegrown FMCG major ITC on Tuesday said it has acquired 100 per cent stake in Kolkata-based packaged spice-maker Sunrise Foods Private Ltd (SFPL) for Rs 2,150 crore in an all-cash deal.
In a filing to the Bombay Stock Exchange, ITC said it has acquired shares of SFPL at an "upfront consideration of Rs 2,150 crores on a cash-free, debt-free basis". The acquisition was completed on July 27, 2020, it said.
"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," the FMCG said in the filing.
Sunrise is a family owned company, engaged primarily in manufacturing of spices under the trademark 'Sunrise'. It is a market leader in eastern India in the fast-growing Spices category with a rich heritage and brand legacy of over 70 years. The company's net worth was Rs 242.89 crore as on March 31, 2020.
ITC's Aashirvaad range of spices has 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. The deep consumer connect of Sunrise in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company's agri business and its pan-India distribution network, will provide significant value creation opportunities for the company," the Kolkata-headquartered firm said.
Ahead of the announcement, shares of ITC closed Tuesday's trade at Rs 195.45 apiece, down 0.41 per cent, on the BSE.
By Chitranjan Kumar