ConAgra Foods, Inc., (NYSE: CAG) one of North America’s leading food makers, announced today that it has become the majority owner of Indian food company Agro Tech Foods Limited (ATFL), increasing its ownership of shares to more than 50 percent, through the purchase of existing shares from a third party. The purchase price for the additional shares was approximately $10 million.
“ConAgra Foods has enjoyed a strong partnership with Agro Tech Foods, dating back to 1997, and we believe strongly in its business model and leadership team,” said Gary Rodkin, CEO, ConAgra Foods. “Expanding our International business is a key part of our strategic plan, and India represents an attractive growth market for ConAgra Foods. We will continue to work with Agro Tech’s management team to expand its business and our investment in this important region.”
Agro Tech Foods is a public limited company that markets food and food ingredients to consumers and institutional customers in India. The company’s products include Sundrop branded edible oils, shelf stable pudding and peanut butter, Crystal branded sunflower oil, Healthy World branded dried green peas, and, based on a license from ConAgra Foods, ACT II branded popcorn.
Agro Tech Foods has enjoyed consistent EPS growth for the last five years, growing from 6.60 rupees/share in 2006-07 to 13.04 rupees/share in 2010-11. Agro Tech Foods most recently reported an 11 percent increase in net sales, and a 26 percent increase in profit after tax, over its prior fiscal year. Additional investor information about Agro Tech Foods can be found online at http://www.atfoods.com/investor_relationships.php.
“We are excited that ConAgra Foods has increased its ownership stake in Agro Tech Foods and look forward to working with the company more collaboratively to increase our growth and profitability,” said Sachin Gopal, president and CEO, Agro Tech Foods.