Homegrown private equity firms Samara Capital and Convergent Finance will jointly pick up a majority stake in Agro Tech Foods Ltd (ATFL), which owns brands like ACT II popcorn and Sundrop edible oil.
The funds have agreed to acquire nearly 52% stake in ATFL from its parent firm Conagra Brands Inc for Rs 650 crore. The funds will also potentially invest another $44 million (Rs 366 crore) to buy an additional 26% stake through a mandatory open offer, as per a stock market disclosure.
The transaction is expected to be completed by the end of calendar year 2024, the disclosure added.
ATFL, which is listed on both the National Stock Exchange and the Bombay Stock Exchange, is engaged in the business of manufacturing, marketing and selling a wide range of food products and edible oils. The Mumbai-based company competes in the ready-to-cook snacks, ready-to-eat snacks, spreads and dips, breakfast cereal and chocolate confectionery segments.
Chicago-headquartered Conagra Brands, one of leading branded food companies of US, also owns brands such as Duncan Hines and Reddi-wip.
Samara Capital, which in past one year, had initiated quite a few liquidity moves, has now stepped onto the pedal for making fresh investments.
Last month, VCCircle reported that Samara Capital is in advanced stage of talks to invest in a natural ingredients supplier, which has operations both in India and US.
The fund is also in the fray to invest in a Mumbai-based pharmaceutical development and manufacturing company.
Convergent Finance, a PE fund floated by former Fairfax India executive Harsha Raghavan, had in the past backed companies including regional airline Fly91, food chemical maker Camlin Fine Science, food supply chain player JII Foods and Hindustan Foods, vendor manufacturer of Pepsico Inc's Kurkure brand of snacks.
