Norwegian consumer major Orkla, through its wholly-owned subsidiary MTR Foods, said on Friday it has entered into an agreement to acquire a majority stake in Kochi-based Eastern Condiments.
The company said Orkla Foods, through MTR, has signed an agreement to purchase 41.8% ownership stake in Eastern from members of the Meeran family and 26% stake from McCormick Ingredients SE Asia in Eastern, which will give Orkla 67.8% ownership stake post the transactions.
Eastern is currently owned by the Meeran family (74%) and McCormick (26%).
The entities have agreed on a purchase price that values Eastern at Rs 2,000 crore on a debt and cash free basis, Orkla said in a statement.
ET had first reported in its May 22 edition that the deal was in advanced stages of being formalised.
“This marks a significant step for Orkla towards strengthening our footprint in core geographies. Eastern and MTR will create a solid platform in the fast-growing Indian market” Orkla president Jaan Ivar Semlitsch said in a statement.