Agro Tech Foods declared the acquisition of 100 per cent stake of Del Monte Foods on Thursday. Agro Tech Foods is known for its popular brands like ACT II popcorn and Sundrop.
As part of this transition, the company also stated that it will rebrand itself as Sundrop Brands, "In tandem with this development, the Company proposes to rebrand itself as Sundrop Brands, reflecting a renewed commitment to its growth aspirations under new ownership," the company said in an official statement.
The company also noted that Del Monte Foods, previously a joint venture between Bharti Enterprises, with a 59.29 per cent share, and DMPL India (owned by Del Monte Pacific) holding 40.71 per cent, will be integrated into Agro Tech Foods' operations.
As part of the acquisition, both Bharti and DMPL will receive shares of Agro Tech Foods, becoming public shareholders of the company. Bharti's share in the new entity will be approximately 21 per cent while DMPL India will get about 14 per cent stake.
The acquisition also grants Agro Tech Foods an exclusive, perpetual licence to the Del Monte brand in India, allowing it to leverage this trusted name as it expands its product offerings.
Del Monte India operates in various food segments, including Italian sauces, ketchup, dips, spreads, and beverages, catering to a broad consumer base.
"We are thrilled to welcome Del Monte Foods into the Sundrop Brands family. This partnership aligns perfectly with our enhanced vision of bringing joyful food experiences to the modern consumer," said Asheesh Kumar Sharma, CEO and Executive Director of Agro Tech Foods.
Agro Tech Foods will gain access to Del Monte's advanced manufacturing and R&D facilities located in Hosur, Tamil Nadu, and Ludhiana, Punjab. These facilities are expected to play a pivotal role in the company's expansion, enabling the development of new product lines tailored to Indian consumers.
"Bharti is excited to announce the combination of ATFL and Del Monte Foods, making Bharti the second-largest shareholder in the combined platform," said Harjeet Kohli, Joint Managing Director of Bharti Enterprises.
This acquisition marks a significant step for Agro Tech Foods, positioning Sundrop Brands to further capitalise on India's growing demand for convenient, high-quality food products.
The acquisition is subject to complete in 60 days subject to regulatory approval from the competition commission of India (ANI)
