Adani Wilmar share price rises over 5% as company to acquire 'Tops' parent GD Foods

The stock climbed 5.47% to ₹252.99 apiece on the National Stock Exchange (NSE) at 9:43 am.

In a regulatory filing, Adani Wilmar, which sells edible oil and food products under the Fortune brand, said that it had signed a definitive agreement to acquire GD Foods.

The acquisition will be completed in multiple tranches, with 80% of the shares acquired in the first phase and 20% over the next three years.

"The acquisition is subject to meeting customary closing conditions, with the first tranche is expected to close in 60 days. The transaction will be funded by internal accruals or IPO proceeds," the company said without disclosing the deal size.

Angshu Mallick, MD & CEO of Adani Wilmar, said the acquisition would lay a strong foundation for a formidable presence in the value-added products (VAP) market over time.

What we know about GD Foods

Founded in 1984, GD Foods’ owned brand Tops offers high-quality products such as tomato ketchup, speciality and culinary sauces, snack sauce, jams, pickles, instant mixes, noodles, corn and choco flakes, and cooking essentials like baking powder, cake mix, vinegar, and corn flour.

Headquartered in Delhi, the company’s sales are primarily concentrated in seven North Indian states. It has a retail presence in over 150,000 outlets and in-house manufacturing facilities at three locations.

Speaking on the deal, Nitin Seth, Vice Chairman of GD Foods said, “We are delighted to see ‘Tops’ become a part of Adani Wilmar. For the past 40 years, we have remained committed to understand and meet the needs of Indian households through innovative products. Now, with AWL’s strength behind us, ‘Tops’ products will reach a much larger number of homes."