Adani Wilmar acquires GD Foods, the parent company of FMCG brand Tops

New Delhi: Adani Wilmar, the parent company of the Fortune brand, announced the signing of a definitive agreement to acquire GD Foods Manufacturing (India). 

The acquisition will be executed in multiple tranches, with 80% of the shares to be acquired in the first tranche and the remaining 20% to be acquired over the next three years. 

In FY’24, GD Foods achieved revenue of Rs 386 crore, growing at a 3-year CAGR of 15%, and recorded an EBITDA of Rs 32 crore. 

In a statement, Adani Wilmar said, “Aligned with our vision to cater to the kitchen needs of Indian households, this acquisition offers a strategic advantage by expanding our portfolio with a broad range of value-added food products.

The acquisition is subject to meeting customary closing conditions, with the first tranche expected to close in 60 days. Internal accruals or IPO proceeds will fund the transaction.

Founded in 1984, GD Foods’ owned brand “Tops” has built a strong foothold in North India over the last 40 years, offering products in categories spanning tomato ketchup, snack sauce, specialty sauces, and culinary sauces, jams, pickles, noodles, instant mixes, corn and choco flakes, and cooking essentials such as vinegar, baking powder, cake mix, and corn flour. 

Headquartered in Delhi, the company’s sales are mainly concentrated in seven states in North India, with a retail presence across more than 150,000 outlets. It also maintains in-house manufacturing facilities at 3 locations.

Angshu Mallick, MD & CEO of Adani Wilmar, said, “As the market evolves, there is a clear need for trusted national food FMCG brands to deliver high-quality, affordable products that fulfill the essential needs of Indian kitchens. Delivering on this requires best-in-class manufacturing operations and a broad distribution reach, both of which are key strengths of AWL. The acquisition of GD Foods aligns with our vision and will significantly enlarge AWL’s offerings to meet the evolving needs of Indian households. With 8 new product categories added to our portfolio, we are laying a strong foundation to build a formidable presence in the value-added products market over time.”

The “Tops” brand is among the top 3 players in the tomato ketchup and pickles category. We will further invest in the brand and significantly increase the distribution reach of all its products. This acquisition will lead to the significant addition of the margin-accretive products in our portfolio. 

AWL’s strong infrastructure and brand ‘Fortune’ built over the last 25 years, along with Wilmar’s deep expertise in the food industry, gives us confidence that we can leverage the massive opportunity of serving every Indian household in the packaged foods category.”

Nitin Seth, Vice Chairman of GD Foods, commented, “We are delighted to see ‘Tops’ become a part of AWL. For the past 40 years, we have remained committed to understanding and meeting the needs of Indian households through innovative products. Now, with AWL’s strength behind us, ‘Tops’ products will reach a much larger number of homes. We are confident that AWL will continue to delight customers and unlock the true potential of the brand.”

For AWL, the transaction was supported by KPMG India Corporate Finance as financial advisor, PricewaterhouseCoopers Services LLP as the due diligence advisor, and Cyril Amarchand Mangaldas as legal counsel. For GD Foods, Equirus Capital acted as a financial advisor and J. Sagar Associates as a legal advisor.