Tata Consumer Products Ltd (TCPL) on Friday (January 12) said it will acquire a 100% stake in Capital Foods, owner of the brands 'Ching’s Secret' and 'Smith & Jones' for ₹5,100 crore.
"Tata Consumer Products today announced that it has signed definitive agreements to acquire 100% equity shares of Capital Foods, owner of the brands ‘Ching’s Secret’ and ‘Smith & Jones’, in a phased manner," according to a stock exchange filing.
The agreement, structured for phased acquisition, involves securing 75% of the equity shareholding upfront, with the remaining 25% to be acquired over the next three years.
Tata Consumer's strategic approach is aligned with its broader vision to diversify its product offerings and target addressable markets within rapidly growing and high-margin categories.
Capital Foods, a well-established player in the packaged foods sector, boasts robust umbrella platform brands and a distinctive range of products tailored for in-home consumption in fast-growing categories.
'Ching's Secret,' a market leader in Desi Chinese, holds sway across various product categories, including Chutneys, Blended Masalas, Sauces, and Soups.
On the other hand, 'Smith & Jones' is rapidly gaining ground, catering to the in-home cooking of Italian and other Western cuisines. Capital Foods' impressive portfolio secures top positions, either as #1 or #2, in five significant categories.
The acquisition will enable Tata Consumer Products to expand its product portfolio and further strengthen its pantry platform. There are significant synergy benefits with the existing businesses of Tata Consumer Products in areas spanning distribution, logistics, exports and overheads.
Sunil D’Souza, MD and CEO of Tata Consumer Products said the company is excited to welcome Capital Foods into Tata Consumer Products. We believe this is a good strategic and financial fit. It will open up significant market opportunities in the fast-growing non-Indian cuisines segment, leveraging the sales and distribution platform that we have built.
Kotak Investment Banking and Khaitan & Co have been TCPL's exclusive financial and legal advisors on this transaction respectively
