Tata Consumer buys 100% stake in Capital Foods for ₹5,100 crore; Details here

livemint.com:

₹5,100 crore, will be an all-cash deal. "The Board of Directors approved the acquisition of 100 percent of the issued equity share capital of Capital Foods Private Limited. The Company, thereafter, has entered into Share Purchase Agreement (SPA) and Shareholders’ Agreement (SHA) with the existing promoters and shareholders of the target company to acquire the entire issued equity share capital in a phased manner," said Tata Consumer in an exchange filing.

Also read: Reliance Industries to announce Q3FY24 results on 19 January The FMCG company said that it would initially acquire 75 percent of the equity shareholding, with the remaining 25 percent to be procured over the next three years. Ching’s Secret holds a dominant position in the Desi Chinese segment across various product categories, including Chutneys, Blended Masalas, Sauces, and Soups. Meanwhile, Smith & Jones is a rapidly expanding brand, specializing in ingredients for in-home preparation of Italian and other Western cuisines.

“We believe this is a good strategic and financial fit. It will open up significant market opportunities in the fast-growing non-Indian cuisines segment, leveraging the sales and distribution platform that we have built. The strong brand recall of Ching’s Secret and Smith & Jones coupled with our operational strength across channels makes us extremely confident of driving topline growth and realizing cost synergies," said Sunil D’Souza, MD & CEO, Tata Consumer Products.