Packaged foods major LT Foods Ltd., the maker of Daawat and Royal basmati rice, has signed a definitive agreement to acquire 100% stake in Hungary-based Global Green Europe Kft for €25 million through its European subsidiary, the company said in a stock exchange filing on Tuesday.
The deal, which also includes the acquisition of two supporting entities — Global Green International (UK) Limited and Greenhouse Agrár Kft. — is subject to FDI approval in Hungary. LT Foods said the acquisition will help it diversify its portfolio and strengthen its foothold in Europe’s growing packaged and processed food market, estimated at €15 billion.
Established in 2006 after acquiring Intergarden N.V., Global Green Europe Kft manufactures and markets sweet corn, gherkins, silver skin onions, peas, and sour cherries in jars and cans. The company operates two manufacturing sites, exports to over 30 countries, and generates annual revenues of about €40 million with a workforce of 170 employees.
Under the terms of the agreement, LT Foods will pay €6 million upfront for full equity ownership, with an additional €1.8 million payable over the next two years through an earn-out mechanism. The company will also assume existing borrowings as part of the transaction.
“The acquisition of Global Green Europe Kft. enables us to enter the processed canned food market, leveraging synergies with our existing business in Europe,” said V.K. Arora, Executive Chairman of LT Foods.
The company said the move aligns with its strategic goal of expanding its global food portfolio beyond rice and staples, enhancing opportunities for cross-selling and operational efficiencies across its European network.
Prowess Advisors, a food- and agribusiness-focused investment bank, served as the exclusive transaction advisor to LT Foods on the deal.