Maharashtra-based Jain Irrigation Systems today said it has entered into an agreement to acquire an 80 per cent stake in UK-based Sleaford Quality Foods Ltd (SQFL), an industrial food ingredients supplier.
It, however, did not mention the price of the acquisition.
The acquisition will help Jain Irrigation's food division to have a direct access to a large market with value-added products, a press release issued here stated.
Sleaford Quality Foods, a supplier of food ingredients to the food industry, has been in the business for more than 40 years and its product range covers a large spectrum of food ingredients including dehydrated vegetables, spices, herbs, dehydrated fruits, soup mixes, pulses and canned vegetables, among others.
Sleaford Quality Foods has a nation-wide distribution and strong sales force and sells its products to multinationals and other food companies under its own brand name or private labels.
The acquisition brings the domestic major one step closer to market, with an opportunity to enter into the large ethnic food market in the UK and possibility of addition of new products in Jain's food division product range, the release said.
"We are very pleased to be involved with Sleaford Quality Foods," Jain Irrigation's Managing Director, Anil Jain, said.
Jain has a call option for acquiring the balance 20 per cent stake based on earn-out model over a period of four-years, the release said.
"Sleaford's commitment to produce high-quality products coupled with its excellent reputation for customer service will greatly help in opening-up a large opportunity for our food processing division," he said.
"We endeavor to add value in Sleaford by providing large source base from India and other parts of the world where Jain Irrigation has its strong presence," Jain said.
No major changes are planned regarding personnel and the management leadership of the business, the release said.
"Jain is the perfect partner for our business. In addition to its strong product supply support, it brings excellent agricultural and food processing expertise to help improve the success of the business," the UK company's Managing Director, James Arnold, said.
Jain Irrigation is a pioneer company in water creation, sourcing, storage structures, water distribution, and water conservation devices like micro-irrigation systems. It also develops high-tech agri-inputs for farm productivity increases like high-quality planting materials, greenhouse cultivation and improved cultivation practices such as ultra high-density plantations, sustainable agriculture, and providing end-to-end solutions to small holders.
The company also manufactures PVC & PE piping systems, plastic sheets and also solar products including water-heating systems, photovoltaic appliances and solar pumps.
The company has a turnover exceeding Rs 3,400-crore.
