LT Foods to buy Hungary's Global Green Europe for 25 mn euros

New Delhi, Oct 14 (PTI) LT Foods on Tuesday said it has agreed to acquire 100 per cent of Hungary-based Global Green Europe Kft for approximately 25 million euros to expand its presence in the European packaged food market.

LT Foods will pay 6 million euros upfront for the equity stake, with 1.8 million euros payable over two years through an earn-out mechanism, the company said in a regulatory filing. It will also assume the target's debt.

The transaction includes the acquisition of Global Green International (UK) Limited and Greenhouse Agrar Kft, which serve as support and distribution entities.

The deal, subject to foreign direct investment approval in Hungary, will be executed through LT Foods Europe Holdings Ltd, a wholly-owned subsidiary.

Global Green Europe, established in 2006, produces canned sweet corn and jarred vegetables, including gherkins, silver skin onions, peas and sour cherries. It operates two manufacturing sites across 45 acres in Hungary and serves more than 30 countries across Europe.

The company has an annual revenue of 40 million euros and employs over 170 people.

The acquisition aligns with LT Foods' strategy to grow through packaged food and strengthen its ready-to-heat and ready-to-eat segments, the company said.

The European canned and preserved vegetables category is estimated at 15 billion euros.

Prowess Advisors, a food and agribusiness-focused investment bank, acted as the exclusive transaction advisor for LT Foods. PTI LUX LUX BAL BAL