Adani Wilmar To Acquire Tops Brand Owner GD Foods

Adani Wilmar Ltd. signed a definitive agreement with GD Foods Manufacturing (India) Pvt. on Tuesday to acquire the owner of household cooking brand Tops.

The acquisition will take place in multiple tranches, with 80% of the shares set to be acquired in the first tranche and the rest to be acquired over the next three years. The deal will be funded using internal funds or proceeds from an initial public offering, according to an exchange filing.

The acquisition is in line with Adani Wilmar's vision to cater to the demands of household kitchens and offered a strategic advantage by expanding its portfolio with a broad range of "value-added" food products, it said.

"With eight new product categories added to our portfolio, we are laying a strong foundation to build a formidable presence in the value-added products market over time," Angshu Mallick, chief executive officer of Adani Wilmar, said.

GD Foods is known for products like tomato ketchup, snack sauce, specialty and culinary sauces, jams, pickles, noodles, instant mixes, corn and choco flakes; and cooking essentials like vinegar, baking powder, cake mix and corn flour have been sold under the brand name for over 40 years.

"Now, with AWL's strength behind us, Tops products will reach a much larger number of homes," Nitin Seth, vice chairperson of GD Foods, said. "We are confident that AWL will continue to delight customers and unlock the true potential of the brand."

The acquisition is subject to customary closing conditions and is expected to close in two phases, with the first part completing within 60 days.

Shares of Adani Wilmar closed 1.17% lower at Rs 239.87 per share on the NSE, compared to a 0.17% decline in the benchmark Nifty.

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