M&As this week: Heritage Foods, Hillside Candy, Ajinomoto

Indian dairy product manufacturer Heritage Foods has reached an agreement with Future Retail to sell its retail and allied businesses to the latter.

The acquisition will include a Rs3bn ($44.86 million) consideration in cash and shares.

Also based in India, Future Retail operates 232 retail format stores named Big Bazaar across the country, while Heritage’s retail network includes 124 stores in Hyderabad, Bengaluru and Chennai.

Heritage’s businesses, including retail, bakery, agri-sourcing and veterinary care, will be spinned off and then merged with Future Retail, except for the veterinary care business.

Future Retail will hold a 3.65% stake in Heritage Foods, following the completion of the acquisition.

US-based private equity firm Highlander Partners has acquired Hillside Candy with financial advice from HT Capital Advisors.

Also based in the US, the target company makes and sells organic, sugar-free and traditional confectionaries.

Japan-based seasonings producer Ajinomoto has reached an agreement with Promasidor Holdings to acquire a 33.33% stake in the latter for JPY55.8bn ($532m).

The target company markets processed foods in 36 African countries. Its sales and distribution network in Africa, when combined with Ajinomoto’s product development capabilities, will help the two companies to become a leading player in the African seasonings and processed foods business.

Ajinomoto already represents Promasidor by representing on its board of directors.

The two companies also plan to integrate their Nigerian subsidiaries in future.

Gores Holdings has acquired US-based Hostess Brands.

The target company makes Hostess Twinkies, Ding Dongs and CupCakes, whereas Gores Holding is a special purpose company set up for the acquisition.