Samara, consortium of investors set up $150-million platform for packaged foods
Samara Capital, along with a consortium of investors including Convergent Finance, is setting up a roll-up platform for packaged foods for which it has earmarked $150 million. It will explore M&As in mid-sized packaged foods as bolt-on or tuck-in acquisitions, pursue organic growth, and sign licensing deals to bring global food brands to India, executives directly aware of the development said.
The platform will be similar to Sapphire Foods, which Samara Capital had set up for food services, which operates Yum! Brands' quick-service restaurant (QSR) chains KFC and Pizza Hut in India.
The Samara Capital-backed platform, to be called Agro Tech Foods, has begun with Sundrop edible oil, peanut butter and ACT II popcorn as its first brands.
Samara and Convergent Finance said last week that they have agreed to jointly acquire 51.8% stake in listed foods maker Agro Tech Foods (ATFL) from its Chicago-based parent company Conagra Brands Inc for 650 crore.
«Samara sees Agro Tech as a base on which to build growth in packaged foods, with more mid-sized brands housed under the Agro Tech Foods umbrella. The platform will explore M&As in adjacent categories which are synergistic to the core business of ATFL,» one of the executives said.
The platform will additionally focus on organic growth for scaleable western-style convenience foods categories and majority investments, including capex, and distribution will be infused here and less on categories such as chocolates and breakfast cereals which are already crowded. «The
