ITC Limited has announced that will acquire a 100 per cent stake in Sproutlife Foods Pvt Ltd (SFPL), which manufactures the Yoga Bar range of healthy food products.
With the development, the conglomerate aims to strengthen its presence in the Rs 45,000 crore nutrition-led healthy foods space over a period of three-four years.
The first 47.5 per cent stake in SFPL will reportedly be acquired, in tranches, by March 31, 2025, however, the balance stake will be acquired at a later date.
“Initial Investment of Rs 175 crore will be made through primary subscription and secondary purchases for the acquisition of 39.4 per cent of the paid-up share capital on a fully diluted basis, which is expected to be completed by February 5, 2023, or such other later date as may be mutually agreed upon,” said ITC in a media statement.
“Further infusion of Rs 80 crore will be made through primary subscription, in one or more tranches, by March 31, 2025, or such other later date as may be mutually agreed upon, based on pre-agreed pre-money valuation,” it added.
"This investment is an exciting opportunity that aligns with ITC’s foods business’ aspiration to build a formidable portfolio in the nutrition-led healthy foods space. We look forward to scaling the Yoga Bar brand offering superior and healthy consumer choices,” said Hemant Malik, divisional chief executive (foods division), ITC.
SFPL claimed that it has achieved Rs 68 crore in sales in 2021-22. Yoga Bar offers product portfolio of nutrition bars, muesli, oats and cereals for online sales and it is also increasing its presence in offline stores.
"The partnership with ITC will add to Yoga Bar’s competitive advantage and take it to the next level from the current annualised run rate of over Rs 100 crore," said SFPL's co-founders Suhasini Sampath Kumar and Anindita Sampath Kumar.
“We are delighted that ITC and Yoga Bar will work together to build one of the largest brands in the healthy foods space,” they said in a media statement.