Agro Tech Foods Limited’s Board of Directors has approved the acquisition of Del Monte Foods Private Limited (DMFPL) by acquiring 100% of DMFPL’s issued and outstanding equity shares. The transaction will be completed through a preferential allotment of Agro Tech Foods Limited equity shares to DMFPL’s current shareholders.
About Del Monte Foods Private Limited (DMFPL)
- DMFPL is a leading Indian manufacturer, marketer, and distributor of branded processed and packaged food products.
- The product range includes ketchups, emulsions, and olive oils.
- DMFPL operates in India as well as in other parts of Asia, the Middle East, and Africa.
- The company has an authorized share capital of ₹600 crore, with an issued, paid-up, and subscribed share capital of ₹511.02 crore.
- For fiscal year 2023-2024, DMFPL reported a turnover of ₹546.68 crore.
Acquisition Terms and Condition
- The transaction requires approval from the Competition Commission of India.
- The acquisition is expected to be finalized within nine months.
Acquisition Consideration
- The acquisition is valued at ₹1300.11 crore.
- Agro Tech Foods Limited will issue 1,33,27,589 equity shares to DMFPL’s shareholders as consideration.
- The equity shares will be issued at a price of ₹975.5 per share.
Strategic Objectives and Impact
- The acquisition supports Agro Tech Foods Limited’s strategy to expand its portfolio in the processed foods sector, adding depth across multiple categories.
- Agro Tech Foods Limited aims to build a sustainable, diversified, and profitable business through this acquisition.
- Upon completion, DMFPL will operate as a wholly-owned subsidiary of Agro Tech Foods Limited, broadening the company’s reach and market presence in the processed food industry.
