ITC Limited announced that it has agreed to acquire direct-to-consumer (D2C) start-up Sproutlife Foods Pvt Ltd in order to expand its presence in the fast-growing nutrition health foods space.
According to an exchange filing, ITC will buy out the company in tranches over a 3-4 years period. It plans to buy out 47.5% of Sproutlife Foods in tranches by March 2025.
By February 15, the company will invest upto Rs175 crore by subscribing to shares representing a 39.4% stake in the startup. It will also invest Rs80 crore by March 31, 2025.
ITC will acquire the remaining stake based on the pre-defined valuation criteria within three months of Sproutlife releasing its financial results for the fiscal year ending March 2026.
Sproutlife Foods' revenue increased from Rs32 crore in 2019-20 to Rs68 crore in 2021-22 (April-March).
Yoga Bar's product lineup includes nutrition bars, muesli, oats, and cereals. It currently has a strong emphasis on online sales, with a growing presence in physical stores.
The acquisition will allow ITC to expand its future-ready portfolio and market presence in the 'Good for You' space, which currently includes Aashirvaad multi-grain atta, Aashirvaad Nature's Super Foods, Farmlite biscuits, Sunfeast Protein Shake, and B Natural Nutrilite ABC Beverage, among others.
At around 9.44 AM, ITC was trading 0.39% higher at Rs333.55, against the previous close of Rs332.25 on NSE. The counter opened at Rs334 and touched an intraday high of Rs334.05.
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