Agro Tech Foods buys Bharti group's Del Monte Foods in Rs 1,300 cr deal

The acquisition, valued at Rs 1,300 crore, will be completed within nine months

Agro Tech Foods (ATFL), the maker of ACT II popcorn, on Thursday announced the 100 per cent acquisition of Del Monte Foods (DMFPL), a joint venture between the Bharti Group (59.29 per cent stake) and Del Monte Pacific Limited (DMPL), which owns 40.71 per cent.

 

The company said it would be rebranding to Sundrop Brands after the acquisition The acquisition is valued at Rs 1,300 crore and will be completed within nine months, Agro Tech Foods stated in an exchange filing.

 

“With this transaction, both Bharti and DMPL will receive shares of ATFL as consideration and will become public shareholders of ATFL post the transaction. Additionally, ATFL (through DMFPL) will acquire an exclusive, perpetual licence for the Del Monte brand in India,” said a release issued by the company.

 

 

ATFL aims to leverage Del Monte Food’s product range –which includes an Italian range, sauces, ketchup, dips, and spreads – to enhance its presence across retail and food services sectors. The transaction will also help the company expand its reach to traditional retail, modern retail, quick-service restaurants, and food services customers.

 

It also gains access to Del Monte’s manufacturing and research and development facility at Hosur in Tamil Nadu and in Ludhiana, Punjab.

 

The company also announced the appointment of Nitish Bajaj the group managing director of the rebranded entity.

 

“We are thrilled to welcome Del Monte Foods into the Sundrop Brands family. This partnership aligns perfectly with our enhanced vision of bringing joyful food experiences to the modern consumer. Working closely with Nitish Bajaj, we intend to deliver maximum value to all stakeholders,” Asheesh Kumar Sharma, chief executive officer and executive director, ATFL, said in the release.

 

“Bharti is excited to announce the combination of ATFL and Del Monte Foods Private Limited, making Bharti the second largest shareholder in the combined platform. This transaction is set to bolster the scale and margin profile of the platform, potentially accelerating shareholder returns and offering a more diverse portfolio of high-quality products to consumers. We look forward to the exciting journey ahead,” said Harjeet Kohli, joint managing director at Bharti Enterprises.   

Recent acquisitions:

 

Zydus Wellness board approved the acquisition of Naturell (India) – maker of Ritebite protein bars - in October 2024

 

Bikaji Foods acquired a majority 53.2 per cent stake in Lucknow-based artisanal sweets chain Hazelnut Factory Food in October 2024

 

Mainland China operator Specialty Restaurants has set aside Rs 125 crore for acquisitions

 

Tata Consumer Product acquired a 100 per cent stake in Organic India and Capital Foods in January 2024