Hindustan Unilever Ltd. signed an agreement with Vijaykant Dairy and Food Products Ltd. and its group company to acquire ‘Adityaa Milk' ice cream and frozen desserts brand.
The FMCG major will also front-end its distribution network across geographies for an undisclosed sum. “The proposed acquisition is in line with HUL's strategic intent to strengthen its position in the rapidly growing ice cream and frozen dessert market in India,” the company said in a statement today.
HUL said that Vijaykant Dairy will manage the business until the transaction is completed, and will also continue to manufacture for HUL for an agreed period of time.
Elaborating on the rationale behind the deal, HUL said that Adityaa Milk brings in distribution and portfolio synergies to Kwality Wall's across Maharashtra, Goa, Karnataka and Kerala.
Following the acquisition of its ice cream and frozen desserts business by the fast moving consumer goods company, Vijaykant Dairy will continue to pursue its dairy business.
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