The acquisition would be executed in multiple tranches, with 80 per cent of the shares to be acquired in the first tranche
Aimed at expanding its portfolio with a broad range of value-added food products, Adani Wilmar, a food fast-moving consumer goods (FMCG) company known for its household brand ‘Fortune’, has notified the signing of a definitive agreement to acquire G.D. Foods Manufacturing (India), a leading player in sauces and pickles category and owner of renowned brand ‘Tops’.
In an exchange filing, the company stated that the acquisition would be executed in multiple tranches, with 80 per cent of the shares to be acquired in the first tranche, and the remaining 20 per cent to be acquired over the next three years. The price per share for the first tranche i.e., 80 per cent of shares has been arrived at basis an agreed enterprise value of Rs 603 crore, as per the company’s statement.
“The acquisition of GD Foods aligns with our vision and will significantly enlarge AWL’s offerings to meet the evolving needs of Indian households. With eight new product categories added to our portfolio, we are laying a strong foundation to build a formidable presence in the value-added products market over time,” stated Angshu Mallick, Managing Director (MD) and Chief Executive Officer (CEO) of Adani Wilmar.
The acquisition is subject to meeting customary closing conditions, with the first tranche is expected to close in 60 days. The transaction will be funded by internal accruals or initial public offering (IPO) proceeds, as per the official statement.
“We are delighted to see ‘Tops’ become a part of AWL. For the past 40 years, we have remained committed to understand and meet the needs of Indian households through innovative products. Now, with AWL’s strength behind us, ‘Tops’ products will reach a much larger number of home,” stated Nitin Seth, Vice Chairman of GD Foods.
As far as the financial performance is concerned, the company’s statement highlighted that In the financial year 2024, GD Foods achieved a revenue of Rs 386 crore, growing at a three-year compounded annual growth rate (CAGR) of 15 per cent and recorded an earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 32 crore.
