Fermenta Biotech Ltd has acquired a 52% membership interest in a US-based nutritional ingredients maker AGD Nutrition LLC.
The aggregate consideration for the acquisition of the interest is $1.26 million (Rs 9.27 crore) in cash, said Fermenta Biotech in a stock market disclosure. The acquisition has been made via the Indian company's wholly-owned subsidiary Fermenta Biotech USA, LLC.
Membership interest means a member's collective rights in a limited liability company, including the member's share of profits and losses, among others.
The acquisition will help Fermenta Biotech facilitate exports and expand its footprint in North America.
The transaction is expected to be completed within the next 30 days.
AGD Nutrition, which was founded in 2002, specialises in animal nutrition. It is also engaged in food and dietary supplements across North America.
AGD Nutrition had clocked a turnover of $6.08 million between January and November last year as compared with $7.87 million and $8.82 million in the full years of 2019 and 2018, respectively.
Founded in 1951, Fermenta Biotech (formerly known as DIL Ltd), is a pharmaceuticals, dietary and nutritional supplements, biotechnology and environmental solutions company.
The company's consolidated revenues dropped by 27.61% year-on-year to Rs 292.95 crore in the last fiscal ended March 2020 due to weaker animal feed realisations. It also reported a 51.90% decrease in earnings before interest, taxes, depreciation, and amortisation (Ebitda) during the period due to lower operating revenues.