Convergent Finance LLP and the private equity firm Samara Capital are set to collaboratively purchase a majority stake of 51.8% in Agro Tech Foods Limited from Conagra Brands, Inc. for $78 million (INR 650 crore).
The funds will pay another $44 mn (INR 360 cr) for the additional 26% of the outstanding shares through mandatory open offer.
Conagra holds a controlling stake in ATFL, a company renowned for marketing popular brands such as ACT II popcorn and Sundrop edible oil.
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As of Thursday, ATFL boasts a market capitalization of INR 2431 crore. ATFL’s shares concluded at INR 997.85, marking a 3.5% increase on the BSE.
ATFL will continue to license the ACT II brand from Conagra for use in India.
“As India’s rapidly-growing consumer class expands and discretionary income levels continue to rise, we will expand ATFL’s distribution reach and product range, thereby transforming it into the country’s leading packaged and snack food platform,” said Harsha Raghavan, Managing Partner at Convergent Finance.
“We are delighted to lead the acquisition of a majority stake in ATFL. We intend to create a large and unique branded food platform in the country with this acquisition,” said Manish Mehta, Managing Director and Co-Chief Investment Officer at Samara Capital.
Chicago-headquartered Conagra Brands, Inc. stands as one of North America’s leading branded food companies.
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