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LT Foods, known for packaged rice brands such as Daawat, said it has acquired a 51 per cent stake in Golden Star Trading Inc. along with its brand Golden Star via its subsidiary LT Foods Americas Inc. (LTFA). The company did not disclose financials of the transaction.
It added the transaction includes a call option to further acquire 49 per cent stake at the end of three years. The acquisition will help strengthen share of LTFA in the branded Jasmine Rice segment, the company said.
LTFA is a material non-listed subsidiary of the company contributing over 35 per cent to the overall revenue through its flagship brand Royal in North America.
Ashwani Kumar Arora, Managing Director and CEO, LT Foods Ltd said, “ The acquisition of Golden Star business is an excellent fit and is consistent with our strategic plan to expand our product offerings across geographies. We all are impressed by Golden Star’s brand growth trajectory and the execution, and operational excellence, to produce Consistent Quality products and expand its reach. We look forward to integrating the two businesses by leveraging the brand equity of Royal and Golden Star as well as its well-established and robust distribution network.”
Golden Star Trading Inc, headquartered in California, is a family-owned business selling over 60 SKUs across the USA. Golden Star’s signature Jasmine Rice products, sold under Golden Star® Brand are all GMO Free, Gluten Free, and natural and/or organic.
US Speciality Rice market includes Jasmine Rice and Basmati Rice. The Jasmine rice is approximately three times bigger than Basmati. Golden Star is one of the strongest brands in the Jasmine Rice market, particularly in the mainstream channel. Through this acquisition, LTFA will be able to leverage its robust distribution network across channels to further expand its share within the Specialty Rice market across North America, the company added.
Christina Wong, President and Promoter Golden Star Trading Inc. said,”In LTFA we found the perfect strategic partner that has strong value system in place. We are confident that the team will further nurture and enhance the brand value of Golden Star® while remaining faithful to our founding principles.”
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