Adani Wilmar to acquire brand Tops owner GD Foods
The acquisition will be executed in two tranches, with 80 percent of the shares will be acquired in the first tranche and the remaining 20 percent will be acquired over the next three years.
ADVERTISEMENT
Adani Wilmar has informed the stock exchanges that it will be acquiring brand Tops' owner GD Foods.
Adani Wilmar, the maker of Fortune brand, said the acquisition will be executed in two tranches, with 80 percent of the shares will be acquired in the first tranche and the remaining 20 percent will be acquired over the next three years.
"This acquisition offers a strategic advantage by expanding our portfolio with a broad range of value-added food products," the FMCG company said.
GD Foods registered a revenue of Rs 386 crore, growing at a three year CAGR of 15 percent in the fiscal year 2024. The company's EBITDA stood at Rs 32 crore in the same period. Headquartered in Delhi, GD Foods' sales are concentrated in seven states in North India, with retail presence across more than 150,000 outlets.
"We are delighted to see ‘Tops’ become a part of AWL. For the past 40 years, we have remained committed to understand and meet the needs of Indian households through innovative products. Now, with AWL’s strength behind us, ‘Tops’ products will reach a much larger number of homes," Nitin Seth, Vice Chairman of GD Foods said.
Adani Wilmar informed the exchanges that the acquisition is subject to meeting customary closing conditions, with the first tranche is expected to close in 60 days. The transaction will be funded by internal accruals or IPO proceeds.
"The acquisition of GD Foods aligns with our vision and will significantly enlarge AWL’s offerings to meet the evolving needs of Indian households. With 8 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, MD and CEO of Adani Wilmar said.
