Fast-Moving Consumer Goods (FMCG) major Tata Consumer will acquire Capital Foods, owner of ‘‘Ching’s Secret’ and ‘Smith & Jones fot an enterpise value of ₹5,100 crore.
The company will acquire a 100 per cent stake in Capital Foods of which 75 per cent of the equity shareholding will be acquired upfront and the balance 25 per cent shareholding will be acquired within the next three years.
Tata Consumer stated that the acquisition is part of its strategic intent to expand its product portfolio and target market in high-margin categories.
The overall size of the categories in which Capital Foods operates is estimated at ₹21,400 crores. Capital Foods’ product profile includes Chutneys, Blended Masalas, Sauces and Soups. Smith & Jones caters to in-home cooking of Italian and other Western cuisines.
“We are excited to welcome Capital Foods into Tata Consumer Products. We believe this is a good strategic and financial fit. It will open up significant market opportunities in the fast-growing non-Indian cuisines segment, leveraging the sales and distribution platform that we have built. The strong brand recall of Ching’s Secret and Smith & Jones coupled with our operational strength across channels makes us extremely confident of driving topline growth and realizing cost synergies. This transaction will accelerate momentum in our business and is margin accretive to our business,” said Sunil D’Souza, MD & CEO, of Tata Consumer Products.