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LT Foods Limited, a global FMCG company known for its packaged food products, has announced the acquisition of 100 per cent stake in Hungary-based Global Green Europe Kft., for an enterprise value of approximately EUR25 million.
According to a press release by LT Foods, the move marks a major step in the company's long-term plan to grow its ready-to-heat (RTH) and ready-to-eat (RTE) business segments while deepening its presence in Europe. "The acquisition will be carried out through LT Foods Europe Holdings Limited, a wholly owned step-down subsidiary of the company. Under the terms of the deal, LT Foods will pay EUR6 million at closing for the full equity shareholding, followed by an additional EUR1.8 million over the next two years through an earn-out mechanism, apart from taking over the borrowings of the acquired entity. The deal also includes the acquisition of Global Green International (UK) Limited and Greenhouse Agrar Kft., which act as distribution and support entities. The transaction is subject to foreign direct investment approval in Hungary," the release said. Global Green Europe Kft., established in 2006 after acquiring the erstwhile Intergarden N.V., is a significant producer of canned and jarred foods including sweet corn, gherkins, peas, silver skin onions, and sour cherries. The company operates two large manufacturing sites covering 45 acres in Hungary and supplies to more than 30 countries across Europe. With an annual turnover of around EUR40 million and a workforce of over 170 employees, Global Green strengthens LT Foods' foothold in the European market. Executive Chairman of LT Foods, V.K. Arora, said, "This acquisition marks an important step forward in our strategy of expanding our product portfolio and global footprint. The acquisition of Global Green Europe Kft. enables us to enter the processed canned food market, leveraging synergies with our existing business in Europe. It also reinforces our commitment to building a globally diversified food portfolio while maintaining our leadership in rice-based products." Adding to this, Vikas Magoon of LT Foods Europe said, "We already have a strong presence in Europe through our manufacturing operations in the Netherlands and the United Kingdom. The addition of Global Green Europe Kft. in Hungary will establish a third manufacturing hub in Europe, strengthening our foothold in Central and Southern Europe. A base in Hungary also offers a cost advantage, enhancing LT Foods' competitiveness in the region." The EUR15 billion canned and processed food market across Europe presents a significant opportunity for LT Foods to diversify further into high-value packaged foods. The company believes this acquisition will help unlock new synergies across its value chain and drive sustainable growth in global markets. Prowess Advisors acted as the exclusive transaction advisor for LT Foods in this deal. (ANI)
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