India Hospitality acquires ready-to-eat food producer Adelie

UK ready-to-eat food producer Adelie Food has been acquired by Indian leisure company India Hospitality (IHC) from private equity firm Duke Street Capital in a deal worth $350m.

IHC plans to leverage Adelie’s cold food manufacturing and distribution capabilities, and strengthen its presence in the growing out-of-home food market.

The acquisition is part of the IHC’s strategy to expand its presence across the globe and will also help the company to make packaged food readily available to Indian consumers through supermarkets as well as small retail outlets.

IHC Chairman Ravi Deol said the rising demand for quality fast food products among India’s growing middle class a primary reason for the acquisition.

Adelie Food, based in Milton Keynes, produces take-away food products such as sandwiches, wraps, paninis, toasties, prepared fruits, chilled snacks, and quiches and salads.

The company distributes its food products to convenience stores, supermarkets, forecourts, trains, planes, coffee shops, contract caterers, high street retailers, and customers in the travel and food service segments in the UK.

The company, which has a turnover of £220m, has seven manufacturing facilities, four distribution sites, and employs 3,000 people.

According to analysts, Adele is the fifth largest player in the UK’s food-to-go market, currently valued at £3.7bn.

IHC, based in Mumbai, India, owns three hotels, an airline catering operation and several restaurant brands. In 2006, the company raised $103m in an IPO and private placement and was listed on AIM, a market operated by London Stock Exchange, till March.