Tata Consumer completes 100% acquisition of Kottaram Agro Foods; Stock jumps 1%

Kottaram Agro Foods has become a wholly-owned subsidiary of Tata Consumer.

Feb 22, 2021 11:02 IST India Infoline News Service

Tata Consumer Products has informed exchanges that the company has completed the acquisition of 100% of the equity share capital of the Kottaram Agro Foods Private Limited.

With that, Kottaram Agro Foods has become a wholly-owned subsidiary of Tata Consumer.

Earlier this month, Tata Consumer entered into a share purchase and investment agreement with the existing promoters and shareholders of Kottayam Agro Foods.

The transaction was for a consideration of Rs155.8cr. Additionally, the promoters are entitled to a contingent consideration, which is payable upon the business achieving certain operational and financial milestones over 5 years.

Kottaram Agro Foods is engaged in the business of breakfast cereals and millet-based snacks under the trademark "Soulful".

This move is consistent with TCPL's strategic intent to expand its product portfolio and participate in multiple consumption occasions.

At around 11.54 am, Tata Consumer trades at Rs620.95 per piece up Rs3.75 or 0.61% on Sensex.

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