Orkla has agreed to acquire a majority stake in India-based Eastern Condiments through its MTR Foods subsidiary.
Established in 1983, Eastern offers a mix of non-vegetarian and vegetarian food products such as blended and single spices. Eastern operates seven production facilities in four different states in India, and employs around 2,955 people.
Orkla will acquire a 41.8% ownership stake in Eastern from members of the Meeran family, and will acquire the entire ownership stake held by McCormick Ingredients SE Asia, which will give Orkla a 67.8% ownership stake.
Following the completion of these transactions, Orkla will merge Eastern into Orkla’s wholly-owned subsidiary MTR. The merged company will be jointly owned by Orkla and Firoz and Navas Meeran, with an ownership stake of 90.01% and 9.99% respectively.
The acquisition agreement also includes a long-term option for Orkla to obtain full ownership of the joint entity in future.
According to Orkla, the purchase of Eastern will double its sales in India, and provide a platform for further growth in the spice category and in adjacent categories.
Orkla president and CEO, Jaan Ivar Semlitsch, said: “This announcement marks a significant step for Orkla towards delivering on its strategy to strengthen our footprint in our core geographies.
“By joining forces, Eastern and MTR will create a solid platform in the fast-growing Indian market, based on strong local brands. MTR has been a great success story for Orkla. Now we look forward to continuing the journey with the Meeran brothers as partners.”
Navas Meeran, chairman of Eastern, added: “Orkla is known for its strong, local brands and holds leadership positions across multiple FMCG categories in several markets.
“Orkla has a solid track record of building leading food brands based on a strong organisational culture and company values. Together with MTR, and as part of Orkla, we will have a stronger platform for our successful operations.”
© FoodBev Media Ltd 2020