| The Hungarian operations of Global Green were established in 2006 following the acquisition of the erstwhile Intergarden N.V. and today serve more than 30 countries across Europe. The company is a key player in the production of sweet corn in cans, and gherkins, silver skin onions, peas and sour cherries in jars, with 2 manufacturing sites spread across 45 acres of land in Hungary. It reports an annual turnover of €40 million.
The acquisition will be executed through LT Foods Europe Holdings, a wholly-owned step-down subsidiary of LT Foods. Under the agreement, LT Foods will pay €6 million at closing for 100% equity shareholding, with the remaining €1.8 million payable over the next 2 years through earn-out mechanism besides taking over the borrowings.
The transaction includes the acquisition of Global Green International (UK) and Greenhouse Agrár Kft., which serve as support and distribution entities. The deal is subject to FDI approval in Hungary.
This acquisition is in line with the long term strategy of the company for growth through packaged food and to further strengthen its ready-to-heat (RTH) and ready-to-eat (RTE) segment. This move will allow LT Foods to make further inroads in Central and Southern Europe while adding synergies with its cross distribution network.
V K Arora, executive chairman of LT Foods, said, “This acquisition marks an important step forward in our strategy of expanding our product portfolio and global footprint. The acquisition of Global Green Europe Kft. enables us to enter the processed canned food market, leveraging synergies with our existing business in Europe. This acquisition also reinforces our commitment to building a globally diversified food portfolio while maintaining its leadership in rice based products. We see this as an opportunity to further strengthen our relationship with customers and consumers by offering them a wider range of high-quality, ambient packaged food products, aligned with our purpose of providing ‘Nurturing Goodness’ for people, planet and the community.”
Vikas Magoon from LT Foods Europe said, “We already have a strong presence in Europe through our manufacturing operations in the Netherlands and the United Kingdom. Addition of Global Green Europe Kft., Hungary will enable LT Foods to establish a third manufacturing hub in Europe, strengthening its foothold in Central and Southern Europe. A manufacturing base in Hungary also offers a relative cost advantage vis-à-vis our existing facilities, enhancing LT Foods’ competitiveness in the region. With expanded manufacturing capabilities and access to a broader consumer base, the company is well-positioned to deliver sustainable growth and value across markets.”
LT Foods is a leading player globally in the specialty rice and rice-based foods business. The company sells its products in more than 65 countries across India, the U.S., Europe, the Middle East, the Far East and the rest of the world.
The company’s consolidated net profit jumped 10% to Rs 168.50 crore on 19% increase in net sales to Rs 2,463.92 crore in Q1 FY26 over Q1 FY25.
The counter rose 0.74% to Rs 410.55 on the BSE. |