Samara Capital, a private equity firm, is currently in talks to purchase a 50% stake in Del Monte Foods, a producer of pasta and sauces, from Bharti Enterprises. Additionally, they are exploring acquiring a minority share in Yummiez, the frozen foods manufacturer owned by Godrej Tyson Foods, according to executives familiar with the situation.
The proposed agreements indicate increasing investor interest in the ready-to-eat packaged foods sector. This interest is driven by the growing demand for convenience and accessibility, which is fueling a preference for Western-style foods even in tier-3 and 4 markets. Furthermore, the expansion of quick commerce and e-commerce is facilitating impulse purchases and broadening market reach. Both potential deals are expected to be part of the new $150 million consolidation platform for packaged foods.
Continue Exploring: SATS launches cutting-edge RTE food facility in Bengaluru as ready-to-eat market booms in India
Samara had established the platform in collaboration with a consortium of investors, which includes Convergent Finance LLP, an investment management and advisory fund.
Continue Exploring: Samara Capital, consortium of investors pool $150M for new packaged foods platform
These tuck-in platforms acquire several firms in the same line of business to enhance product offerings and market access, while benefiting from synergies. Large corporations or private equity firms utilize these platforms to acquire and integrate multiple smaller businesses.
According to the executives mentioned above, negotiations between Samara and Bharti Enterprises for Del Monte are in an advanced stage, while discussions with Godrej Agrovet for the Godrej Tyson Foods stake are in the preliminary phase.
Continue Exploring: Convergent Finance LLP and Samara Capital to acquire 51.8% stake in Agro Tech Foods for $78 Million
Valuations for the proposed deals are still under discussion, according to the sources. In FY23, Godrej Tyson Foods surpassed the INR 1,000-crore sales mark and recorded a profit before tax of INR 13.20 crore, whereas Del Monte Foods generated revenues of INR 536.36 crore but incurred losses of INR 15.2 crore.
As of press time, emails sent to the offices of Samara Capital and Bharti Enterprises had not received responses.
A Godrej Agrovet spokesperson said, “We do not comment on any speculative or forward-looking news or rumours… We do make and shall continue to make adequate disclosures to the stock exchanges as and when required.”
Godrej Tyson Foods is a joint venture with listed Godrej Agrovet holding a 51% stake and US-based Tyson Foods owning 49%.
