Private equity firm Samara Capital is in talks to buy a 50% stake in Del Monte Foods from Bharti Enterprises and a minority stake in Godrej Tyson Foods, the maker of Yummiez frozen foods.
These potential deals show a growing interest from investors in packaged foods that are ready-to-eat. People in smaller markets are also seeking convenience and are drawn to Western-style foods. The rise of quick commerce and e-commerce has made it easier for people to access these foods.
Samara Capital, along with Convergent Finance LLP and other investors, has established a platform for packaged foods, with an investment of $150 million. This platform aims to acquire multiple companies in the same sector to expand their product range and market reach.
Negotiations with Bharti Enterprises for Del Monte Foods are in an advanced stage, while talks with Godrej Agrovet for a stake in Godrej Tyson Foods are still in the early stages. The valuations for these deals are still being discussed.
In the financial year 2023, Godrej Tyson Foods surpassed sales of Rs 1,000 crore and reported a pre-tax profit of Rs 13.20 crore. Meanwhile, Del Monte Foods recorded revenues of Rs 536.36 crore but faced losses of Rs 15.2 crore.
Emails sent to Samara Capital and Bharti Enterprises for comment were not responded to by the time of publishing this article.
A spokesperson for Godrej Agrovet declined to comment on speculation and rumors, stating that the company will continue to make necessary disclosures to the stock exchanges when required.
Godrej Tyson Foods is a joint venture between Godrej Agrovet (51%) and US-based Tyson Foods (49%).
