Tea producer Goodricke Group Ltd on Tuesday acquired eight tea brands of Godfrey Phillips India Ltd for a consideration of Rs20 crore.
The deal will give Goodricke Group rights to the trademarks, titles and brands associated with the tea business of Godfrey Phillips.
In a notification to BSE, Godfrey Phillips said that it has entered into an agreement with Goodricke to sell/assign trademarks along with all the rights, titles, interests, and goodwill connected with the company’s packaged tea business.
The sale is in line with Godfrey Phillips’ decision to exit the packaged tea business which contributed less than 3% of the gross turnover of the company, the notification added.
The agreement will be effective from 1 November.
Goodricke managing director Arun N. Singh in a statement said the acquisition will bring synergy to its branded tea business.
Kolkata-based Goodricke group also acquired the distribution network of Godfrey Phillips, according to its vice-president Vikram Singh Gulia.
The Mumbai-headquartered tobacco manufacturer had around 400 distributors across markets like Jammu & Kashmir, Punjab, Uttar Pradesh, Bihar, Rajasthan and Himachal Pradesh.
Goodricke, however, would source teas on its own for the Godfrey Phillips brands such as Tea City, SC Gold, Symphony, Samovar, SC Premium, Super Cup, Rangoli and Utsav. It may also use the acquired distribution network to sell its own brands in the future.
On Tuesday, Goodricke shares on BSE rose 8.45% to close at Rs279 apiece, while Godfrey Phillips’ shares rose 1.13% to close at Rs1,025.
Source: Mint