>ADF Foods Ltd. (“ADF”) (NSE:ADFFOODS, BSE Scrip code 519183), the global provider of packaged Indian foods and a well known name in the overseas markets, will enter into an agreement to acquire substantially all of the assets of Elena’s Food Specialties, Inc. (“Elena’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. 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.
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.”
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.
Mark Cooley, Vice President and Co-founder, Elena’s Food Specialties, Inc., said, “We are extremely excited to join the ADF team, as their proven track record to grow and expand in international markets is perfectly suited to the Elena’s strategy.” He further stated “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.
About ADF Foods Ltd.
What started as a humble venture back in 1932 of a small retail store selling dry fruits & nuts, soon diversified into a major food processing company manufacturing ethnic Indian pickles, chutneys, canned foods, frozen foods and spices under various brand names which are leaders today in their segments, categories and markets. ADF’s international brands like Ashoka, Camel, Aeroplane, Khansama and Truly Indian have reached many parts of the world.
Apart from marketing and distributing its own brands, ADF are also contract manufacturers for leading multinationals and main stream retailers worldwide. The company has been awarded the Best FMCG (Fast Moving Consumer Goods) Company in the Agri-Business Sector (SME Sector) and the Best Overall Exporter of the Year Award (SME Sector) 2008-2009 by DHL-CNBC International Awards.
ADF Foods Ltd. is listed on the Bombay Stock Exchange and National Stock Exchange.
About Elena’s Food Specialties
Elena’s Food Specialties, Inc. (Elena’s) is a South San Francisco-based manufacturer and marketer of organic and natural frozen food products having a turnover of $9 million in 2009. Since its beginning in 1952, Elena’s has grown to include on-trend brands such as PJ’s Organics and Nate’s, cumulatively offering Mexican-style foods, vegetarian products and more. Elena’s is also a leading supplier of private label items to leading supermarket chains across the USA. Elena’s currently has about 75 employees and USDA approved manufacturing facility of around 30,000 Sq Feet.
About Centrum Capital
Centrum is one of the leading companies in the country that offers innovative, customized and integrated financial solutions with a presence across India, London, New York and Dubai.
Centrum Capital Ltd. and its group subsidiaries, FCH Centrum Direct Ltd., Centrum Broking Pvt. Ltd., FCH Centrum Wealth Managers Ltd. and Centrum Infrastructure & Realty Ltd. provide value added products and services to corporate and individuals across the country in both the Private and the Public sector. Centrum’s services comprise of investment banking, wealth management, portfolio management, stock broking, foreign exchange, travel services and infrastructure and real estate advisory services.
