Agro Tech Foods to acquire Del Monte Foods in Rs 1,300 crore share swap deal

The deal is subject to regulatory approvals, including clearance from the Competition Commission of India, and is expected to close within nine months.

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  • Storyboard18,
| November 15, 2024 , 10:45 am
This strategic acquisition marks Agro Tech's push to broaden its portfolio in the processed foods sector.
This strategic acquisition marks Agro Tech's push to broaden its portfolio in the processed foods sector.

Agro Tech Foods, backed by private equity firm Samara Capital, is set to acquire Del Monte Foods Pvt Ltd in a share swap transaction valued at over Rs 1,300 crore. The deal involves Agro Tech issuing 1.33 crore new shares at Rs 975.5 per share to Del Monte Foods’ current stakeholders, that is Bharti Enterprises and Del Monte Pacific, as consideration for their holdings.

Following the acquisition, Del Monte Foods will become a wholly-owned subsidiary of Agro Tech. Bharti Enterprises will emerge as the second-largest shareholder in Agro Tech, holding approximately 21% of the company once the deal is finalized.

Additionally, Agro Tech, through Del Monte Foods, will secure an exclusive, perpetual license for the Del Monte brand in India, expanding its market presence.

This strategic acquisition marks Agro Tech’s push to broaden its portfolio in the processed foods sector. Known for brands like Sundrop and Act II, Agro Tech plans to leverage Del Monte’s established product line to cater to a broader range of customers, including both retail and institutional clients such as quick-service restaurants and airlines.

The deal is subject to regulatory approvals, including clearance from the Competition Commission of India, and is expected to close within nine months.

Prior to this, Del Monte Pacific Ltd, based in Singapore, acquired a 40.1% stake in FieldFresh for $20.8 million in 2007, steering the joint venture towards processed foods. This move led to the introduction of a variety of products in India, including fruit juices, ketchup, olive oil, pasta, mayonnaise and canned fruits.

In 2021, the company underwent a rebranding and became Del Monte Foods Pvt Ltd.

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