Convergent Finance LLP and private equity company Samara Capital will buy a 51.8 per cent share in Agro Tech Foods from Conagra Brands, Inc. for USD 78 million (Rs650 crore).
The funds will pay an extra USD 44 million (Rs360 crore) for the remaining 26 per cent of outstanding shares through a mandated open offer.
Conagra owns a majority stake in ATFL, which markets popular brands such as ACT II popcorn and Sundrop edible oil.
ATFL has a market capitalization of Rs2431 crore as of Thursday. ATFL shares finished at Rs997.85, up 3.5 per cent on the BSE.
ATFL will continue to licence Conagra’s ACT II brand for usage in India.
“As India’s rapidly-growing consumer class expands and discretionary income levels continue to rise, we will expand ATFL’s distribution reach and product range, thereby transforming it into the country’s leading packaged and snack food platform,”said Harsha Raghavan, Managing Partner at Convergent Finance.
“We are delighted to lead the acquisition of a majority stake in ATFL. We intend to create a large and unique branded food platform in the country with this acquisition,” said Manish Mehta, Managing Director and Co-Chief Investment Officer at Samara Capital.
Chicago-headquartered Conagra Brands, Inc. is one of North America’s leading branded food companies.
