M&A

M&A

ITC to acquire 100% stake in frozen meats seller Prasuma

Business Standard  

Diversified conglomerate ITC Ltd is to acquire a 100% stake in Gurugram-headquartered Prasuma , a brand in the frozen, chilled, and ready-to-cook foods segment. ITC will invest around INR 187 crore to acquire 62.5% of Prasuma. The valuation for the remaining 37.5% will be decided at a later date. The acquisition will be carried out in multiple tranches over three years.In the first phase, ITC will acquire a 43.8% stake in Ample Foods Pvt Ltd (AFPL), which owns the Prasuma brand, along with its subsidiary Chao Chao Foods Pvt Ltd and its associate company Meat and Spice Pvt Ltd (MSPL). The initial investment of INR 131 crore will be made through a combination of primary subscription and secondary purchases, to be completed by March 2025. ITC's stake in Prasuma will subsequently increase to 62.5% by April 2027 through an additional INR 56 crore investment based on a pre-agreed valuation.Prasuma, known for its premium frozen momos, baos, Korean fried chicken, and delicatessen meats under the Meatigo' brand, claims to have a presence across online and offline retail channels in over 100 cities. Prasuma reported an annual revenue run rate of approximately INR 200 crore, with a consolidated turnover of INR 131 crore in FY24.