Agro Tech Foods, backed by private equity firm Samara Capital, is set to acquire Del Monte Foods, a joint venture between Bharti Enterprises and Del Monte Pacific, in a share-swap transaction valued at over Rs 1,300 crore ($156 million). The deal will see Agro Tech issuing 13.3 million shares at Rs 975.5 each to the current shareholders of Del Monte Foods—Bharti Enterprises (holding 59.29%) and Del Monte Pacific (40.7%)—as payment for their stakes. Following the transaction, Del Monte Foods will become a wholly owned subsidiary of Agro Tech Foods.
As part of its transformation, Agro Tech will rebrand itself as Sundrop Brands. The company will also secure an exclusive, perpetual license to the Del Monte brand in India, ensuring long-term access to the brand for its growing customer base.
Post-acquisition, Samara Capital’s stake in Agro Tech will reduce from 51% to 31%, making it the largest shareholder, while Bharti Enterprises will become the second-largest stakeholder with a 21% stake. Del Monte Pacific will acquire a 14% stake in the revamped company.
Harjeet Kohli, Joint Managing Director of Bharti Enterprises, emphasized that the group remains committed to the food sector. “The objective is to merge Agro Tech’s portfolio, including Sundrop edible oils and Act II popcorn, with Del Monte’s processed foods and beverages. Both businesses have significant organic growth potential, and there is room to explore acquisitions in adjacent markets,” he said.
