Samara Capital-backed Agro Tech Foods acquires Del Monte Foods from Bharti Enterprises

Private equity firm Samara Capital and Convergent Finance-backed Agro Tech Foods Limited (ATFL), on Thursday announced the 100% acquisition of Del Monte Foods Private Limited (DMFPL), a joint venture between the Bharti Group (59.29%) and Del Monte Pacific Limited which owns 40.71%.

The size of the deal is estimated at over Rs 1,300 crore. With the 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 license for the Del Monte brand in India.

ATFL is a significant player in the packaged food and edible oils sectors, with brands such as ACT II popcorn and Sundrop edible oil. The company will rebrand itself as Sundrop Brands, a company statement said.

ET first reported in its March 1 edition that Bharti Enterprises is looking to exit its joint venture with the Singapore-listed packaged foods company Del Monte Pacific Limited, which both entities had formed to set up Del Monte Foods to sell juice fruit drinks, olive oil, pasta, mayonnaise, ketchup and dried and canned fruits in India. In its March 21 edition, ET had first reported that Samara Capital, which owns ATFL, was in talks to acquire Del Monte Foods from Bharti Enterprises.

The transaction adds an established portfolio of food products under ATFL’s umbrella, marking a significant step forward in the company’s expansion plans, the statement added.

As part of this transaction, ATFL also gains access to Del Monte’s manufacturing and R&D facility in Hosur, Tamil Nadu and in Ludhiana, Punjab.

To lead the platform, the company has appointed Nitish Bajaj as group managing director. He was previously in key roles at the consumer products division at Piramal, CEAT tyres, and before that with Reckitt Benckiser, Ranbaxy Global Consumer Healthcare, and Heinz India, the statement said.

Asheesh Kumar Sharma, CEO and executive director, ATFL, said: “We intend to deliver maximum value to all stakeholders through our mission of creating innovative and convenient food solutions for the modern consumer.”

Harjeet Kohli, joint managing director of Bharti Enterprises stated: “Leveraging significant synergies on the back of a profitable business model, 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 products.”