Kolkata (West Bengal) [India], July 28 (ANI): Cigarette-hotel-to-FMCG major ITC has announced the acquisition of spices manufacturer Sunrise Foods Pvt Ltd (SFPL) in an all-cash deal valued at Rs 2,150 crore.
In addition, SFPL will be entitled to contingent consideration of an amount not exceeding Rs 150 crore which is payable upon Sunrise achieving mutually agreed operational and financial milestones over a period of two years.
On May 24, ITC had entered into a share purchase agreement to acquire shares of SFPL.
"We now write to advise that the company has acquired 100 per cent of the equity share capital of Sunrise on July 27. Consequent to the above, Sunrise and its two subsidiaries Sunrise Sheetgrah and Hobbits International Foods have become wholly-owned subsidiaries of the company with effect from the aforesaid date."
ITC said it acquired shares of SFPL at an upfront consideration of Rs 2,150 crore on a cash-free, debt-free basis.
SFPL is a market leader in eastern India in the fast-growing spices category with a rich heritage and brand legacy of over 70 years. Over the years, the brand has built a loyal consumer franchise, both in the basic and blended spice segments.
ITC's Aashirvaad range of spices has a strong presence in Telangana and Andhra Pradesh. The company is one of India's leading producers and exporters of high-quality food-safe spices.
"The acquisition will augment the company's product portfolio and is aligned to ITC's aspiration to significantly scale up its spices business and expand its footprint across the country," it said in a statement.
"The deep consumer connect of Sunrise in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company's agri business and its pan-India distribution network, will provide significant value creation opportunities for the company."
In 2019-20, SFPL reported a turnover of Rs 591.5 crore, up from Rs 503.9 crore in the previous fiscal and Rs 400.6 crore in 2017-18. (ANI)