ITC concludes $287m acquisition of spice maker Sunrise Foods

Indian multinational conglomerate ITC has completed the Rs21.5bn ($287m) acquisition of spices manufacturer Sunrise Foods on a cash-free, debt-free basis.

Based in Kolkata, West Bengal, Sunrise Foods has spice manufacturing units across various locations in India.

In its regulatory filing, ITC said: “In addition, the sellers are entitled to contingent consideration of an amount not exceeding Rs150 crore, which is payable upon Sunrise achieving mutually agreed operational and financial milestones, over a period of two years.

“The company has acquired 100% of the equity share capital of Sunrise on 27 July 2020.”

The acquisition is expected to further enhance ITC’s Aashirvaad brand portfolio that offers a wide range of products such as flour, chilli powder, and spices.

ITC further added that the deal would complement its Aashirvaad spices range that has already established its presence in the southern Indian states such as Telangana and Andhra Pradesh.

ITC said that the deal is in line with its strategy to significantly enhance its spices business and expand its footprint across the country.

Upon completion of the deal, Sunrise and its two subsidiaries, Sunrise Sheetgrah and Hobbits International Foods, will become part of ITC subsidiary portfolio.

In May, ITC has signed a share purchase agreement (SPA) for the acquisition of the complete equity share capital of Sunrise Foods.

Sunrise Foods’ products are said to have been tailored to suit regional tastes and preferences, both in the basic and blended spice segments.