LT Foods gains 1.5% as significant arm acquires 51% stake in Golden Star Trading

4 Mar 2022 , 11:09 AM

Earlier on Thursday, LT Foods Ltd., a seven decades-old consumer food company, has announced the acquisition of a 51% stake in Golden Star Trading Inc. along with its brand Golden Star through its subsidiary LT Foods Americas Inc. (LTFA). The company also has the call option to acquire a further 49% stake in the company at the end of three years.

LTFA is a significant arm of the company, contributing more than 35% of the overall revenue through its flagship brand Royal in North America. This acquisition is aimed to strengthen LTFA’s share in the branded jasmine rice market.

With this acquisition, LTFA will be able to make the best use of its robust distribution network across channels to expand its share in the specialty rice market across North America. Also, it will offer a more diverse and sizeable market, thus setting better foot in the US specialty rice market.

Golden Star’s acquisition supports the company’s long-term growth strategy to expand its product offering around the globe.

Commenting on this occasion, President LTFA, Mr. Abhinav Arora said “We are thrilled with the opportunity to be associated with Golden Star to create long-term value for both customer and consumer. We are positive that we found the right partner in Golden Star Trading, being a family-owned and operated business as well as their “customer first” focus all of which align with the company’s core values. This partnership enables LTFA to strategically expand our market share of specialty grains in the North American region.”

LT Foods is currently trading at Rs66.75 up by Rs0.95 or 1.44% from its previous closing of Rs65.80 on the BSE. The scrip opened at Rs67.50 and has touched a high and low of Rs68.95 and Rs66.55 respectively.