Ruchi Soya Industries on Tuesday announced the acquisition of biscuits business from Patanjali Natural Biscuits Pvt Ltd (PNBPL) in a slump sale at Rs 60.02 crore.
The company, in a regulatory filing, said its Board of Directors on May 10 approved the signing of a Business Transfer Agreement (BTA) in this regard with the PNBPL.
The acquisition will be completed in the next two months, it added.
"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," Ruchi Soya Industries said.
The consideration is payable in two tranches. About Rs 15 crore of the total purchase consideration will be paid on or before the closing date, while the rest Rs 45.01 crore will be paid within 90 days form the closing date, it said.
The transaction includes certain contract manufacturing agreements along with transfer of employees, assets (tangible and intangible), current assets and current liabilities, licences and permits (excluding certain assets and liabilities of PNBPL as specified under the BTA), it said.
The objective of the acquisition is to expand the product portfolio of the existing business of the company, it added.
Ruchi Soya Industries said that this acquisition supports the company's ongoing strategy to consolidate its position as a leading FMCG player.
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.
The turnover of the PNBPL was Rs 448 crore in 2019-20.