Deal marks LT Foods’ entry into the European processed canned food market
LT Foods, the FMCG company known for its flagship Daawat brand, have signed a definitive agreement to acquire a 100 per cent stake in Hungary-based Global Green Europe for an enterprise value of about EUR 25 million, the company said in a regulatory filing.
The acquisition marks LT Foods’ entry into the processed canned food segment and aligns with its strategy to expand its global packaged food portfolio. The deal is being executed through LT Foods Europe Holdings Limited, a wholly-owned step-down subsidiary.
Under the agreement, LT Foods will pay EUR 6 million upfront for full equity shareholding and an additional EUR 1.8 million over the next two years through an earn-out mechanism, apart from assuming existing borrowings. The transaction also includes Global Green International (UK) Limited and Greenhouse Agrár, which function as support and distribution entities. Completion of the deal is subject to foreign direct investment approval in Hungary.
Founded in 2006, Global Green Europe produces canned sweet corn, gherkins, silver skin onions, peas, and sour cherries. The company operates two manufacturing facilities spread over 45 acres in Hungary, employs more than 170 people, and supplies to over 30 countries. Its annual turnover is about EUR 40 million.
“This acquisition marks an important step forward in our strategy of expanding our product portfolio and global footprint. The acquisition of Global Green Europe. enables us to enter the processed canned food market, leveraging synergies with our existing business in Europe”, said V.K. Arora, Executive Chairman, LT Foods.
He noted that the investment supports LT Foods’ long-term strategy to grow its ready-to-heat (RTH) and ready-to-eat (RTE) segments, while unlocking operational efficiencies across its European network.
“We already have a strong presence in Europe through our manufacturing operations in the Netherlands and the United Kingdom. The addition of Global Green Europe in Hungary will establish a third manufacturing hub in Europe, strengthening our foothold in Central and Southern Europe. A base in Hungary also offers a cost advantage, enhancing LT Foods’ competitiveness in the region”, said Vikas Magoon of LT Foods Europe.
The European canned and preserved vegetables market is estimated at about EUR 15 billion. Analysts said LT Foods’ entry into the segment could open opportunities for cross-selling, operational synergies, and category expansion within its RTH and RTE portfolio.
Following the announcement, LT Foods shares rose 1.92 per cent to close at Rs 408 per share on the National Stock Exchange. Over the past five trading sessions, the stock has gained 3.63 per cent, though it has declined 11.29 per cent over the past month. The company’s market capitalisation stood at Rs 14,167.92 crore as of 14 October 2025.
LT Foods, which reported annual revenues of Rs 8,770 crore, markets Daawat and Royal basmati rice, Ecolife organic staples, and Kari Kari snacks. The company has been expanding its manufacturing footprint across the US, UK, and Saudi Arabia in recent years as part of its global growth strategy.
