Tata Consumer Products Ltd (TCPL) is reportedly in the final stages of acquiring Capital Foods Pvt Ltd, the brand behind famous names such as Ching’s Secret and Smith & Jones.
What Happened: TCPL is in talks to initially buy a 65%-70% stake in Capital Foods from its main investors, with plans to gradually purchase the remaining shares, Economic Times reported, citing sources.
The deal is expected to value Capital Foods at around ₹5,500 crore. Final negotiations and legal proceedings are still underway. Nestle SA and Kraft Heinz Co were also in the race for the acquisition.
Capital Foods, known for its Indian-flavoured range of products including instant noodles, soups, condiments, curry pastes, and frozen entrees under the Ching’s Secret and Smith & Jones brands, has garnered a massive consumer base in the country. This potential acquisition can place TCPL in direct competition with Nestle's Maggi, which currently dominates the ₹5,000-crore branded instant noodles market with a 60% share.
The decision to sell Capital Foods was taken by its three main shareholders – Invus Group, the U.S. private equity group General Atlantic, and Ajay Gupta, the founder chairman of Capital Foods. The sale garnered interest from several multinational and Indian consumer companies.
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