ITC completes acquisition of spices-maker Sunrise in Rs 2,150-crore all-cash deal

“The acquisition was completed on July 27,” ITC said in a stock exchange filing late Monday evening.

Cigarette-to-FMCG-to-hotel major ITC has completed its acquisition of spices-maker Sunrise Foods in an all-cash deal valued at Rs 2,150 crore as the diversified conglomerate looks to augment its product portfolio and significantly scale up its spices business across the country.

The company on May 23 entered into a share purchase agreement (SPA) to acquire 100% of the equity share capital of Sunrise Foods (SFPL), engaged mainly in the business of spices under the trademark ‘Sunrise’.

“The acquisition was completed on July 27,” ITC said in a stock exchange filing late Monday evening. On the cost of the acquisition, the company said it has acquired shares of SFPL at an “upfront consideration of Rs 2,150 crore on a cash-free, debt-free basis”.

“In addition, the sellers are entitled to contingent consideration of an amount not exceeding Rs 150 crore, which is payable upon Sunrise achieving mutually agreed operational and financial milestones, over a period of two years,” it said.

Before this acquisition, Sunrise was a Kolkata-based family owned firm. SFPL’s turnover was Rs 591.50 crore during the last fiscal, while its net worth stood at Rs 242.89 crore as on March 31, 2020.