Varun Beverages to acquire Lunarmech Technologies

On Monday, Varun Beverages informed the bourses that its board of directors has approved the acquisition of 20 per cent equity stake in Lunarmech Technologies Private Limited where it has already invested. Post this acquisition the company will hold nearly 55 per cent of equity capital.

Further, for acquiring 20 per cent stake the company will pay Rs. 15 crore in cash. This acquisition is likely to get complete by 15th of September 2019.

Lunarmech is involved in the business of manufacturing, processing, buying, selling, importing, exporting in all kinds of pet bottle caps and crown caps.  During the last fiscal (FY19), the Lunarmech Technologies’ revenue stood at Rs. 77.5 crore, up by nearly 25 per cent from previous year.

Vivek Gupta, a promoter of Varun Beverages, is also a director of Lunarmech,; that makes this acquisition a related party transaction. The company said that the transaction is being done at arm’s length.

Varun Beverage is PepsiCo’s second largest carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs) global franchisee (outside USA). The company has rights to manufacture, distribute and sell CSDs, fruit juice based drinks, packaged drinking water, sports drinks and energy drinks.