DSM Fresh Foods announced that its Board of Directors has approved the acquisition of a 51% controlling stake in Avyom Foodtech (AFPL), marking the company's formal entry into the ready food solutions segment, including ready-to-eat (RTE) and ready-to-cook (RTC) categories, along with expansion into overseas export markets.
The acquisition will be carried out through a cash infusion of approximately Rs 7.5 crore by DSM Fresh Foods by subscribing the shares of Avyom Foodtech through preferential allotment, resulting in the acquisition of a 51% equity stake in AFPL. In addition, the Company may explore the induction of external strategic investor(s) through the issuance of fresh shares in AFPL, subject to approval by the Board. This structure is intended to ensure strong alignment between the operating management and long-term capital partners while supporting the Company's strategic growth objectives.
As part of the transaction, Avyom Foodtech has entered into a binding term sheet with Ambrozia Frozen Foods to acquire, on a going-concern basis through a slump sale, Ambrozia's operating food processing business, together with identified assets and liabilities. The acquisition includes approximately Five (5) acres of land, a fully operational food processing facility, and associated plant and machinery, with associated liabilities such as bank borrowings and trade payables being assumed.