India's ADF Foods Ltd. is all set to acquire assets of the US based Elena's Food Specialties, for an undisclosed amount.
Bimal Thakkar, Managing Director, ADF Foods Ltd., said, “This is in line with ADF’s strategy to pursue inorganic growth which not only increases the product portfolio but also widens our distribution network. Elena’s has a strong distribution network within the US mainstream markets and owns popular brands like PJ’s Organics and Nate’s.”
Elena’s is a US-based manufacturer and marketer of organic and natural products and a leading provider of protein-based Mexican foods in the natural and organic category. ADF will acquire all significant assets and certain liabilities of Elena’s for an agreed consideration.
The acquisition will be conducted by means of an asset purchase by ADF and/or its international subsidiary companies, the company said in a release. Some of Elena’s existing shareholders will hold a minority stake in ADF’s operating subsidiary in USA. The deal is expected to close by October, 2010.
Through Elena’s, ADF is increasing its presence in the United States which is a high growth market for ethnic foods. All of Elena’s products are produced from scratch at the company’s facility in South San Francisco which comprises of offices, manufacturing facilities and ample frozen and dry warehousing. Its plant is USDA certified that operates under HACCP guidelines. The facility is also certified Organic by QAI which enables the company to manufacture and market its organic products.
Through Elena's, ADF is increasing its presence in the US which is a high growth market for ethnic foods.
All Elena's products are produced at the company's facility in South San Francisco which comprises of offices, manufacturing facilities and ample frozen and dry warehousing.
Elena's Food Specialities' Vice-President and Co-Founder, Mark Cooley, said, "We are extremely excited to join the ADF team, as their proven track-record to grow and expand in global markets perfectly suits the Elena's strategy."
"Over the past year-and-a-half, Elena's has made great strides in positioning itself for growth. ADF's acquisition will help by providing synergistic operational support, product development and capital to make a step change in sales growth and profits, which will in turn drive additional value for the shareholders and clients."
Centrum Capital acted as exclusive financial advisors to ADF.
ADF Foods owns international brands such as Ashoka, Camel, Aeroplane, Khansama and Truly Indian and is listed on both the BSE and NSE.
Elena's presently has about 75 employees and an USDA approved manufacturing facility of around 30,000 sq feet.