ITC acquires Sunrise Foods for Rs 2,150 crore; stock down by 0.41 per cent

ITC informed that it has acquired spices maker Sunrise Foods Private Limited (SWPL) in an all-cash deal valued at Rs 2,150 crore. The announcement was made after the trading hours on Monday. 

The shares of SFPL have been acquired at an 'upfront consideration of Rs 2,150 crore on a cash-free, debt-free basis', the company stated in a filing to the exchanges. As a result of the transaction, Sunrise and its two subsidiaries, Sunrise Sheetgrah Private Ltd and Hobbits International Foods Pvt Ltd, have become wholly-owned subsidiaries of ITC, it further added.

SFPL is a Kolkata-based family-owned company, engaged primarily in the business of spices and is a market leader in eastern India in the fast-growing spices category.

ITC’s Aashirvaad range of spices is already a market leader in Telangana and Andhra Pradesh and the acquisition will further augment ITC’s product portfolio and expand its footprint across the country. It is expected that the acquisition will create significant value creation opportunities through synergies arising out of the sourcing and supply chain capabilities.

The acquisition further aligns with ITC’s strategy of scaling up its fast-moving consumer goods (FMCG) businesses in a profitable manner thereby, leveraging its institutional strengths of deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages as well as packaging know-how.

On Tuesday, the stock of ITC Limited closed at Rs 195.45, lower by 0.41 per cent or Rs 0.80 per share on BSE, against 1.47 per cent gain in the benchmark index.