May 13, 2021
Ruchi Soya Industries is going to buy the biscuits business from Patanjali Natural Biscuits for Rs. 60cr. The company, in a regulatory filing, said its Board of Directors on May 10 approved the signing of a Business Transfer Agreement (BTA) in this regard with the PNBPL. The acquisition will be completed in the next two months.
The consideration is payable in two tranches. About Rs. 15 crores of the total purchase consideration will be paid on or before the closing date, while the rest Rs. 45.01 crore will be paid within 90 days from the closing date, it said. The transaction includes certain contract manufacturing agreements along with transfer of employees, assets (tangible and intangible), current assets and current liabilities, licenses, and permits (excluding certain assets and liabilities of PNBPL as specified under the BTA). The objective of the acquisition is to expand the product portfolio of the existing business of the company.
Ruchi Soya Industries said that this acquisition supports the company’s ongoing strategy to consolidate its position as a leading FMCG player. Ruchi and PNBPL being related parties have agreed to a non-compete arrangement under which PNBPL and its respective affiliates including Patanjali Ayurveda Limited cannot enter into any competing business of biscuits in India directly or indirectly, it added.