Friday, August, 07, 2020 05:03:49

 

  • ITC announces the acquisition of Sunrise Foods in an all-cash transaction valued at approximately USD 287 million
  • The deal would strengthen ICT’s expand its footprint across the nation
  • The acquisition would provide ICT with important value-creating opportunities in spices business

ITC Limited, the Indian multinational conglomerate company headquartered in Kolkata, India, has reportedly acquired Sunrise Foods Private Limited in an all-cash transaction valued at Rs 2,150 crore. The firm confirmed that it has acquired one hundred percent of the equity share of Sunrise at an upfront consideration of the amount on a cash and debt-free basis. 

ITC said in a regulatory filing that the sellers are allowed to contingent consideration of an amount not exceeding INR 150 crore and is payable upon Sunrise attaining mutually agreed financial as well operational milestones that took over two years.

As per reliable reports, with this acquisition, two subsidiaries of Sunrise, Sunrise Sheetgrah, and Hobbits International Foods have also joined ITC.

Earlier ITC shared the idea of acquiring Sunrise on May 24.

For the record, a Kolkata-based, family-owned company, SFPL deals in the business of spices and carries the legacy of 70 years. It has been a market leader in eastern India in the fast-growing spices category.

According to sources families with the knowledge of the matter, this deal will strengthen the ICT’s product portfolio and is aligned to the company’s aspiration to scale up its Spices business and expand its footprint across the nation. In Telangana and Andhra, the ITC's Aashirvaad range of spices has a robust presence and is one of the leading Indian food spices producers and distributors. The acquisition would provide the company with important value-creating opportunities, said ITC.

In the financial year 2019-20, Sunrise had a turnover of around USD 79 million, claim trusted sources. 

Source Credit -https://www.moneycontrol.com/news/business/itc-acquires-sunrise-foods-for-rs-2150-crore-5607211.html