(Bloomberg) -- Consumer goods company, Dabur India Ltd. has entered into an agreement to acquire a majority stake in Badshah Masala Pvt Ltd., a producer of spices and seasonings for 5.9 billion rupees ($71 million) according to an exchange filing.
Dabur India is acquiring a 51% stake in Badshah and plans to buy the remaining 49% of the issued and paid-up equity share capital over a period of five years, the filing said. Dabur said Badshah's enterprise value was pegged at 11.5 billion rupees.
“This acquisition will accelerate our growth strategy as we continue to build our foods business,” Mohit Burman, chairman of Dabur India said in a statement.
The transaction is expected to be cash EPS neutral in the first year, P. D. Narang, a director at Dabur said, adding that the acquisition is expected to be completed within this fiscal year.
Earlier, the company announced a net profit of 4.9 billion rupees for the quarter ending September and an interim dividend of 2.5 rupees per share.
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