Del Monte Foods to be acquired by Agro Tech Foods in share swap deal

Samara Capital backed Agro Tech Foods aims to strenghten its proceesed foods portfolio by the acquisition of Del Monte Foods Pvt Ltd in a share swap transaction that is worth more than INR 1300 crore. The agreement is including the issuance of 1.33 crore new shares by Agro Tech valued at INR 975.5 per share to Del Monte Pacific and Bharti Enterprises, the currently existing stakeholders of Del Mone Foods, considering their holdings. 

Del Monte Foods will turn to be a wholly-owned subsidiary of Agro Tech after the completion of the acquisition where the second largest shareholder of Agro Tech will be Bharti Enterprises with a share of approx 21% post the finalisation of the deal. In addition an exclusive permanent license for Del Monte in India will be secured by Agro Tech via Del Monte Foods.

With this acquisition Agro Tech  has plans of leveraging the established product line of Del Monte for catering to a wide range of consumers which includes both institutional and retail clients such as airlines and quick service restaurants. The deal will be  subjected to regulatory approvals such as a clearance from the Competition Commission of India. The deal will be closed within a span of nine months. 

In the year 2021, Del Monte Pacific Ltd revamped itself and became Del Monte Foods Pvt Ltd.

Before thiis a 40.1% stake in FieldFresh valued at $20.8 million was acquired by Del Monte Pacific Ltd in the year 2007, venturing into the processed foods sector.