Adani Wilmar shares rise 5.5% as company to acquire ‘Tops’ parent GD Foods in phased deal; Do you own?

Adani Wilmar share price rose as much as 5.56 per cent on Wednesday's trading session after the FMCG company announced its plans to acquire GD Foods Manufacturing (India) Pvt Ltd, the maker of Tops brand products, including ketchup, sauces, and pickles.

At 9:45 am, Adani Wilmar stock was trading at ₹253.17 per share on National Stock Exchange (NSE). The stock has fallen over 31.45 per cent in past one year and 31.54 per cent in past six months.

More about Adani Wilmar-GD Foods deal

In a regulatory filing, Adani Wilmar, the company behind the Fortune brand of edible oils and food products, announced that it has entered into a definitive agreement to acquire GD Foods.

The acquisition will take place in multiple stages, with 80 per cent of the shares being acquired initially, while the remaining 20 per cent will be obtained 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 in an exchange filing.

Angshu Mallick, Managing Director and CEO of Adani Wilmar, stated that the acquisition would serve as a solid foundation for establishing a strong foothold in the value-added products (VAP) market in the long run.

“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," said Nitin Seth, Vice Chairman of GD Foods.

Established in 1984, GD Foods’ proprietary brand, Tops, provides a wide range of high-quality products, including tomato ketchup, specialty and culinary sauces, snack sauces, jams, pickles, instant mixes, noodles, corn and choco flakes, as well as essential cooking ingredients like baking powder, cake mix, vinegar, and corn flour.

Based in Delhi, the company primarily operates in seven North Indian states, with a retail presence in more than 150,000 outlets and in-house manufacturing facilities across three locations.