Key Points
New Delhi: Tata Consumer Products Ltd (TCPL) on Friday signed definitive agreements to acquire 100% equity shares of Capital Foods, owner of the brands Chings Secret and Smith & Jones, and Organic India, a company that sells organic herbal teas and health foods..
While the acquisition of Capital Foods will be in a phased manner, TCPL will acquire 100% of Organic India in an all-cash deal..
TCPL will pay an enterprise value on a no cash-no debt basis of 5,100 crore for 100% stake in Capital Foods..
Organic Indias differentiated products and robust supply chain together with Tata Consumers distribution strength across channels in India and specific geographies globally make us confident of accelerating momentum in the business while improving our margin profile.".
The overall size of the categories in which Capital Foods operates is estimated at 21,400 crore, while the total addressable market for the categories that Organic India is present in is 7,000 crore in India and 75,000 crore in international markets..
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