Adani Wilmar, on Tuesday, announced the signing of a definitive agreement to acquire GD Foods Manufacturing (India) Private Ltd.

The acquisition will be executed in multiple tranches, with 80 per cent of the shares to be acquired in the first tranche, and the remaining to be acquired over the next three years, stated an official release here. In FY24, GD Foods achieved a revenue of ₹386 crore, growing at a three-year CAGR of 15 per cent, and recorded an EBITDA of ₹32 crore.

Though the statement from the company did not disclose the deal amount, sources said that GD Foods is being acquired for an estimated ₹850 crore.

Commenting on the acquisition, Angshu Mallick, MD and CEO of Adani Wilmar, said, “As the market evolves, there is a clear need for trusted national food-FMCG brands to deliver high-quality, affordable products that fulfil the essential needs of Indian kitchens. Delivering on this requires best-in-class manufacturing operations and a broad distribution reach, both of which are our key strengths. The acquisition of GD Foods aligns with our vision and will significantly enlarge our offerings to meet the evolving needs of Indian households. With eight new product categories added to our portfolio, we are laying a strong foundation to build a formidable presence in the value-added products market over time.”

Founded in 1984, GD Foods-owned brand “Tops” has built a strong reputation as a household brand in North India over the last 40 years, offering high-quality products in categories spanning tomato ketchup, snack sauce, specialty sauces and culinary sauces, jams, pickles, noodles, instant mixes, corn and choco flakes, and cooking essentials such as vinegar, baking powder, cake mix, corn flour. Headquartered in Delhi, the company’s sales are mainly concentrated in seven States in North India, with a retail presence across more than 1.5 lakh outlets. It also maintains in-house manufacturing facilities at three locations. The “Tops” brand is amongst the top 3 players in the tomato ketchup and pickles category.

Nitin Seth, Vice-Chairman of GD Foods, commented, “For the past 40 years, we have remained committed to understand and meet the needs of Indian households through innovative products. Now, with Adani Wilmar’s strength behind us, ‘Tops’ products will reach a much larger number of homes.”

The acquisition is subject to meeting customary closing conditions, with the first tranche expected to close in 60 days. The transaction will be funded by internal accruals or IPO proceeds. For Adani Wilmar, the transaction was supported by KPMG India Corporate Finance as financial advisor, PricewaterhouseCoopers Services LLP as the due diligence advisor and Cyril Amarchand Mangaldas as legal counsel. For GD Foods, Equirus Capital acted as financial advisor and J Sagar Associates as legal advisor.