The manufacturer of Fortune edible oil, Adani Wilmar Ltd on Tuesday announced it is going to acquire GD Foods Manufacturing (India), which sells the Tops range of sauces and condiments, valuing the New Delhi-based target company at Rs 603 crore.
The acquisition will be executed in multiple tranches with 80% of the shares to be acquired in the first tranche and the remaining 20% over the next three years.
The target valuation for the first tranche of 80% stake in GD Foods is at Rs 603 crore, whereby the deal size for this tranche is likely to be around Rs 483 crore. The acquisition will be closed in an all-cash deal and will be funded by
internal accruals or IPO proceeds, Adani Wilmar said.
In a stock market notification, Adani Wilmar said the acquisition is in line with its strategy of foraying into multiple value-added food products and enhances its product offerings into high gross margin categories. “It will further enhance the company’s kitchen essential offering,” it said.
In 2023-24, GD Foods had achieved revenue of Rs 386 crore and an EBITDA of Rs 32 crore. Its ‘Tops’ brand is amongst the top three players in the tomato ketchup and pickles category.
Angshu Mallick, MD & CEO of Adani Wilmar, said as the market evolves, there is a clear need for trusted national food FMCG brands to deliver high-quality and affordable products that fulfill the essential needs of Indian kitchens. He said the deal will add eight new product categories to its portfolio.
Adani Group is exiting the joint venture stake it holds in Adani Wilmar. It recently sold 13.5% through the stock exchange and will sell the balance to its JV partner Wilmar International. The company will also change its name to AWL Agri Business Ltd.
