Deal will complement Kwality Wall’s, says CEO Sanjiv Mehta
FMCG major Hindustan Unilever Limited (HUL) has signed an agreement with Vijaykant Dairy and Food Products Limited (VDFPL) and its group company to acquire its ice cream and frozen desserts business for an undisclosed sum.
HUL will acquire VDFPL’s flagship brand Adityaa Milk and its front-end distribution network across geographies.
The proposed acquisition is in line with HUL’s strategic intent to strengthen its position in the rapidly-growing ice cream and frozen dessert market in India, said a company statement. The transaction is subject to fulfilment of certain conditions and the parties will work together to complete this over the next few months, the statement added.
According to the terms of the deal, VDFPL will manage the business until the transaction is completed, and will continue to manufacture for HUL for an agreed period of time.
‘More growth potential’
Commenting on the deal, Sanjiv Mehta, CMD, HUL, said: “Ice creams and frozen desserts is an exciting category and we see great potential for growth. We believe the acquisition will complement our existing portfolio of Kwality Wall’s.”
Adityaa Milk, which was incorporated in September 2004, brings in distribution and portfolio synergies to Kwality Wall’s in Maharashtra, Goa, Karnataka and Kerala, according to the statement.
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