Agro Tech Foods (ATFL), the maker of ACT II popcorn, announced its ₹1,300 crore acquisition of a 100% stake in Del Monte Foods (DMFPL) in a BSE release on Thursday, while also rebranding itself to Sundrop Brands.

Del Monte Foods is a joint venture with Bharti Group holding a 59.29% stake and Del Monte Pacific Limited (DMPL) holding 40.71%. Following the acquisition, both Bharti and DMPL will receive ATFL shares as compensation, making them public shareholders of ATFL. Additionally, ATFL will gain a perpetual, exclusive licence for the Del Monte brand in India through DMFPL, the release states.

This acquisition will allow Agro Tech Foods to broaden its product offerings by integrating Del Monte's portfolio, which spans Italian foods, sauces, ketchup, dips, and spreads, into the retail and food services markets. It will also provide an opportunity for ATFL to expand its reach across traditional and modern retail outlets, quick-service restaurants, and food service providers, it adds.

As part of the deal, ATFL will acquire Del Monte’s manufacturing and R&D facilities in Hosur, Tamil Nadu, and Ludhiana, Punjab, with the transaction expected to close within nine months, according to an exchange filing.

The company will acquire 100% of the issued equity share capital of Del Monte Foods.“The consideration for the acquisition of 100% of the issued and outstanding equity shares of Target company shall be discharged by way of consideration other than cash i.e., 1,33,27,589 equity shares of the company will be issued,” the company states.

In another development, the company informed exchanges that it has appointed Nitish Bajaj as the group managing director to lead the newly branded Sundrop Brands. With more than 28 years of experience in consumer products and brand management, Bajaj has previously held roles such as CEO of Piramal's Consumer Products Division, senior vice president of Marketing at CEAT Tyres, and leadership positions at Reckitt Benckiser, Ranbaxy Global Consumer Healthcare, and Heinz India.

“This partnership aligns perfectly with our enhanced vision of bringing joyful food experiences to the modern consumer. Working closely with Nitish Bajaj, we intend to deliver maximum value to all stakeholders through our enhanced mission of creating innovative, delicious and convenient food solutions for the modern consumer,” says Asheesh Kumar Sharma, chief executive officer and executive director, Agro Tech Foods Limited in the release.

Agro Tech Foods Del Monte deal

Agro Tech Foods acquires Del Monte Foods for ₹1,300 cr