Tata To Buy Ching's Owner Capital Foods, Fabindia's Organic India In Rs 7,000-Crore Deals
The deals are part of Tata Consumer's strategy to expand in high-margin categories.
Tata Consumer Ltd. has agreed to buy Capital Foods Pvt., the owner of Ching’s Secret and Smith & Jones, and Fabindia-backed Organic India in two separate deals valued at about Rs 7,000 crore, as its expands its portfolio of high-margin businesses.
The Tata Group company has entered into share purchase agreement and shareholders’ agreement to acquire the Ajay Gupta-founded Capital Foods through an all-cash deal, in a phased manner at an enterprise value of Rs 5,100 crore, according to its exchange filing.
The company will acquire 75% stake initially, and the remaining 25% stake over three years, following board approval, according to an exchange filing on Friday.
The acquisition is in line with the company's strategic intent of entering into new adjacent high growth/attractive margin categories in the food and beverage space, the filing said.
According to the deal, the acquisition of 75% equity shareholding is expected to be completed on or before March 31, 2024. The remaining 25% shareholding shall be bought within three years.
Capital Goods sells packaged food and condiments and primarily manufactures and sells chutney, masala, sauces, noodles and soups under the trademark Ching’s Secret and Smith & Jones.
Tata Consumer To Buy Organic India In Rs 1,900-Crore Deal
Tata Consumer Ltd. plans to acquire Organic India at an enterprise value of Rs 1,900 crore, to create a health and wellness platform.
The company has entered into a share purchase agreement with Fabindia for an all-cash deal, according to a separate exchange filing on Friday.
The acquisition of up to 100% of the equity shareholding is expected to be completed within three months.
Organic India's product portfolio spans premium and high-growth categories focused on sustainable living, including herbal supplements, tea and infusions, and organic packaged foods.
