In a strategic move, Agro Tech Foods Ltd (ATFL), known for brands such as ACT II Popcorn and Sundrop, has announced the acquisition of Del Monte Foods Pvt Ltd, a joint venture between Bharti Enterprises and global food major Del Monte Pacific Ltd (DMPL) enabling it to create a more diversified portfolio.
As part of the deal, Agro Tech Foods, backed by private equity firm Samara Capital, will issue 1.33 crore equity shares of the company with a face value of ₹10 each at ₹975.5 per share to the selling JV shareholders. The deal is valued at about ₹1,300 crore and is expected to be completed within nine months, it said in its regulatory filings.
The company has also proposed to rebrand itself as Sundrop Brands.
“With this transaction, both Bharti and DMPL will receive shares of ATFL as consideration and will become public shareholders of ATFL post the transaction. Additionally, ATFL (through Del Monte Foods) will acquire an exclusive, perpetual licence for the Del Monte brand in India, ensuring long-term access to this trusted brand for its growing consumer base,” the company said in a statement.
As part of this transaction, the company will gain access to Del Monte’s manufacturing and R&D facility in Hosur, Tamil Nadu and in Ludhiana, Punjab.
“This state-of-the-art facility will play a key role in supporting the company’s expansion and the development of new product lines tailored to Indian consumers,” it added.
Product portfolio
Del Monte’s product portfolio in India, includes the Italian range, sauces, ketchup, dips and spreads, and beverages.
Ago Tech Foods said this will complement its existing product portfolio.
“The strategic transaction is expected to further enhance ATFL’s presence across retail and food services sectors, expanding its reach to traditional retail, modern retail, quick-service restaurants and food services customers,” it added.
Meanwhile, Nitish Bajaj has been appointed as the Group Managing Director of the Company. His previous roles include CEO of the Consumer Products Division at Piramal, Senior Vice President of Marketing at CEAT Tyres, and leadership roles with Reckitt Benckiser, Ranbaxy Global Consumer Healthcare, and Heinz India.
Asheesh Kumar Sharma, CEO and Executive Director of ATFL, stated, “Working closely with Nitish Bajaj, we intend to deliver maximum value to all stakeholders through our enhanced mission of creating innovative, delicious and convenient food solutions for the modern consumer.”
Harjeet Kohli, Joint Managing Director of Bharti Enterprises stated, “Leveraging significant synergies on the back of a profitable business model, trusted brands and a loyal consumer base, this transaction is set to bolster the scale and margin profile of the platform, potentially accelerating shareholder returns and offering a more diverse portfolio of high quality products to consumers.”
DMPL remarked, “With Sundrop Brands’ experience and commitment, we believe the Del Monte brand will reach new heights in India.”