Buccheri Group, the buyer, is based in Melbourne and is engaged in the business of coffee manufacturing.
Tata Consumer Products (TCPL) said that its Australia-based step-down subsidiary will sell its MAP Coffee business to Buccheri Group for 1.25 million Australian dollars (Rs 6.74 crore). Earth Rules Pty Ltd, Australia, a step-down subsidiary of the company, has entered into an asset sale and purchase agreement on December 5, 2020, for the sale of MAP Coffee Business to Buccheri Group Pty Ltd, Tata Consumer Products said in a regulatory filing. Post completion of the transaction, Earth Rules will continue to be a step-down subsidiary of TCPL, it added.
Sunil D'Souza, Managing Director & Chief Executive Officer, Tata Consumer Products Limited said, "In line with our strategy of driving structural simplification and focusing on core businesses where we see profitable growth, we have exited the out of home coffee business in Australia. While it was a small part of our overall business, the divestment will help us further consolidate our international footprint and better focus on our core brands."
The total consideration of AUD 1.25 million (Rs 6.74 crore) will be received in tranches by February 28, 2021 as per terms of the asset sale and purchase agreement dated December 5, 2020, Tata Consumer Products added.
Buccheri Group, the buyer, is based in Melbourne and is engaged in the business of coffee manufacturing.
At 11:45 am, the shares of Tata Consumer Products were trading higher by 0.8 per cent at Rs 568.30 as against a 0.25 per cent rise in the benchmark indices.
