Ruchi Soya Industries has announced the acquisition of biscuits business from Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a ‘slump sale’ at Rs 60.02 crore. In a regulatory filing, the company said that its Board of Directors had approved the signing of a Business Transfer Agreement (BTA) in this regard with the PNBPL on May 10.
The amount of consideration for the acquisition agreed under the BTA is Rs 60.02 crore. The transaction is undertaken on a slump sale basis, a statement from Ruchi Soya Industries said. The acquisition will be completed in the next two months, it added.
PNBPL reported a turnover of Rs 448 crore in FY 2019-20.
The transaction includes certain contract manufacturing agreements along with transfer of employees, assets (tangible and intangible), current assets and current liabilities, licenses and permits (excluding certain assets and liabilities of PNBPL as specified under the BTA), it said.
Ruchi and PNBPL being related parties have agreed to a Non-Compete arrangement under which PNBPL and its respective affiliates including Patanjali Ayurved Limited cannot enter into any competing business of biscuits in India directly or indirectly, it added.
Ruchi Soya Industries said that this acquisition supports the company’s ongoing strategy to consolidate its position as a leading multi-brand, multi-category FMCG player.