LT Foods to buy Hungary's Global Green Europe for 25 mn euros; forays into canned food biz

New Delhi, Oct 14 (PTI) Home-grown FMCG firm LT Foods on Tuesday said it has agreed to acquire a 100 per cent stake in Hungary-based Global Green Europe Kft for approximately 25 million euros (about Rs 256 crore) to expand its presence in the European packaged food market.

LT Foods owns basmati rice brands -- Daawat and Royal.

It 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.

The transaction, which will be executed through LT Foods Europe Holdings, a wholly-owned step-down subsidiary of Delhi-based firm, is in line with the long-term strategy of the company for growth through packaged food and to further strengthen its RTH (Ready-to-Heat) and RTE (Ready-to-Eat) segment.

It would also help LT Foods to enter the canned food business, as it strengthens its packaged food business.

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 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.

LT Foods Executive Chairman V K Arora said, "The acquisition of Global Green Europe Kft enables us to enter the processed canned food market, leveraging synergies with our existing business in Europe. This acquisition also reinforces our commitment to building a globally diversified food portfolio while maintaining its leadership in rice-based products".

LT Foods, with a consolidated revenue of around Rs 8,770 crore in FY25, operates processing units in India, the US and Europe and has a distribution network with over 1,400 distributors across the globe.

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 KRH KRH BAL BAL