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Diversified conglomerate ITC Ltd has completed acquisition of spice-manufacturer Sunrise Foods Private Ltd at an “upfront” cash deal price of ₹2,150 crore. Shares of Sunrise Foods were acquired on a “cash-free, debt-free” basis.
In a stock market notification, ITC said the acquisition was completed on July 27 with 100 per cent of the equity share capital being acquired.
“In addition, the sellers are entitled to contingent consideration of an amount not exceeding ₹150 crore, which is payable upon Sunrise achieving mutually agreed operational and financial milestones over a period of two years,” it further said in a notification to the bourses.
Based-out of Kolkata, Sunrise Foods, with a turnover of ₹591 crore in FY20 and a net worth of ₹242.89 crore, is a 70-year-old brand. It has strong presence in the eastern and north-eastern parts of the country. The acquisition is expected to help ITC ramp up its existing spices portfolio under the Aashirvaad brand. Aashirvaad’s select portfolio of spices has a strong presence in Andhra Pradesh and Telangana.
ITC had announced the acquisition of Sunrise earlier in May this year.
Post acquisition, Sunrise, and its two subsidiaries ― Sunrise Sheetgrah Private Limited and Hobbits International Foods Private Limited ― have become wholly-owned subsidiaries of ITC, it added in the stock market notification.
FMCG thrust
ITC has been focussing on the non-cigarette FMCG business over the past few years.
The company has acquired brands such as Savlon, Shower to Shower and Charmis in the personal care space; Nimyle in the home care segment; and B Natural juices in the foods segment.
Currently, the FMCG-Others segment is the second-largest for the company in terms of revenue, ahead of hotels, agri-business and paper & packaging.
Under FMCG-Others, ITC has presence in segments such as foods, personal care, stationery, matches and incense sticks. The Sunrise Foods buyout complements ITC’s food portfolio, which consists of brands such as Aashirwaad, Sunfest, Bingo!, YiPPe!, B Natural and Fabelle, say market sources.
Shares of ITC were trading at ₹197.30, up 0.54 per cent on the BSE around 12 noon.
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