Tata Consumer Products on Friday said that it would be buying a 100 per cent stake in Capital Foods, which markets its products under Ching’s Secret and Smith & Jones brands, for Rs 5,100 crore in an all-cash deal. 

“The board of directors approved the acquisition of 100 per cent of the issued equity share capital of Capital Foods Private Limited. The company, thereafter, has entered into Share Purchase Agreement and Shareholders’ Agreement with the existing promoters and shareholders of the target company to acquire the entire issued equity share capital in a phased manner,” said Tata Consumer in an exchange filing. 

The FMCG company added that 75 per cent of the equity shareholding will be acquired upfront and the balance 25 per cent shareholding will be acquired within the next three years. 

Estimated turnover of Capital Foods for FY24 is approximately Rs 750 to Rs 770 crore. The turnover was Rs 706 crore in FY23, Rs 574 crore in FY22 and Rs 667 crore in FY21. 

“Ching’s Secret is a market leader in Desi Chinese across its product categories – Chutneys, Blended Masalas, Sauces and Soups. Smith & Jones is a fast-growing brand catering to in-home cooking of Italian and other Western cuisines,” Tata Consumer said in a separate press release. 

Tata Consumer said that this acquisition would enable it to expand its product portfolio and further strengthen its pantry platform. The overall size of the categories in which Capital Foods operates in is estimated at Rs 21,400 crore. 

In another deal, Tata Consumer Products on Friday agreed to acquire up to 100 per cent stake in Organic India, a Fabindia-owned business that sells tea, infusions, herbal supplements and packaged foods, for Rs 1,900 crore in an all cash deal. 

The announcement came shortly after the company announced acquisition of a 100 per cent stake in Capital Foods.