Tata Consumer Products Acquires Capital Foods, Organic India

New Delhi, Jan 12 (PTI) Tata Consumer Products Ltd (TCPL) on Friday announced to acquire 100 per cent equity shares of Capital Foods, owner of the brands Ching's Secret and Smith & Jones.

The acquisition will create a health and wellness platform and allow the manufacturing of organic products, including tea, infusions, herbal supplements and packaged foods.

TCPL will acquire a 100 per cent stake in Capital Foods on an Enterprise value of Rs 5,100 crore in a phased manner, the Tata Group FMCG arm said in a statement.

"The company has agreed to acquire 75 per cent shareholding of the target company. Balance 25 per cent shareholding of the target company to be acquired within 3 years," it said.

Besides, TCPL will acquire a 100 per cent stake in Organic India, in an all-cash deal, at an enterprise value of Rs 1,900 crores, along with an additional earnout for the shareholders linked to FY2025-26 audited financials of the company.

"This move is consistent with Tata Consumer's strategic intent to expand its product portfolio and its target addressable market in fast-growing/high margin categories," TCPL said in the statement.

The acquisition of Capital Food will enable Tata Consumer Products to expand its product portfolio and further strengthen its pantry platform.

"There are significant synergy benefits with the existing businesses of Tata Consumer Products in areas spanning distribution, logistics, exports and overheads. The overall size of the categories in which Capital Foods operates is estimated at Rs 21,400 crores," it said.

Organic Foods, which is in primarily organic food and beverage products, "will enable the creation of health and wellness platform," said TCPL.