ITC to acquire 100% equity of Sunrise Foods by share purchase agreement
- ITC share price added nearly 5 percent in early trade on May 26 after the company said it is going to acquire 100 percent stake in Sunrise Foods.
- ITC has entered into a share purchase agreement (SPA) on May 23, 2020 to acquire 100 percent of the equity share capital of Sunrise Foods Private Limited (SFPL), a company primarily engaged in the business of spices under the trademark ‘Sunrise’, subject to fulfilment of various terms and conditions as specified in the SPA, as per company release.
- Sunrise is a market leader in eastern India in the spices category with a legacy of over 70 years.
- The proposed acquisition will augment the company’s product portfolio and is aligned to ITC’s aspiration to significantly scale up its Spices business and expand its footprint across the country.
- Credit Suisse has maintained neutral call with a target at Rs 190 per share.
- According to Credit Suisse, the Sunrise acquisition is an excellent fit for ITC’s strengths and it is likely to be the largest FMCG purchase done by company.
- The ITC’s Aashirvaad range of spices is popular in Telangana and Andhra Pradesh and it is one of India’s leading producers and exporters of high-quality spices.
About ITC-
- ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata, West Bengal. Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974.
- Founded – 1910
- Headquarters– Kolkata, West Bengal
- Chairman & MD– Sanjiv Puri
About SFPL-
- Over a century ago, in 1902, Pandit Ishwari Prasad Sharma, a modest businessman, decided to invest in making and selling spices in Kolkata. His insistence on quality ensured growing popularity and demand. Enthused by this, his son, Pandit Mewaram Sharma, worked tirelessly to further expand the business. The third generation, Om Prakash Sharma, Ram Prakash Sharma and Satya Prakash Sharma, sons of Pandit Mewaram Sharma, continued the growth trajectory by creating the SUNRISE brand in the 1950s under the aegis of a partnership company. After a couple of decades, the partnership made way for Sunrise Foods Pvt. Ltd.
- Founded – 1902
- Headquarters– Kolkata, West Bengal
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