Adani Wilmar announces acquisition of Tops parent GD Foods in phased deal

FMCG firm Adani Wilmar Ltd (AWL) on Tuesday announced the acquisition of GD Foods Manufacturing, which sells food products like pickles and sauces under the Tops brand.

Adani Wilmar sells edible oils and other food products under the Fortune brand.

In a regulatory filing, the company informed that it has signed a definitive agreement to acquire GD Foods Manufacturing (India) Private Limited.

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

The acquisition will be subject to compliance of the customary closing conditions, with the first tranche is expected to close in 60 days. The transaction will be funded by internal accruals or IPO proceeds, it said.

The company did not disclose the deal size.

Adani Wilmar said the acquisition offers a strategic advantage by expanding its portfolio with a broad range of value-added food products.

Adani Wilmar Managing Director and CEO Angshu Mallick said the acquisition will lead to the significant addition of margin-accretive products in Adani Wilmar's portfolio.

The 'Tops' brand is among the top three 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."  As the market evolves, there is a clear need for trusted national food FMCG brands to deliver high-quality and affordable products that fulfil the essential needs of Indian kitchens, he said.

"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," Mallick added.

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

In FY24, GD Foods achieved a revenue of Rs 386 crore, growing at a three-year CAGR of 15 per cent, and recorded an EBITDA of Rs 32 crore.

Headquartered in Delhi, the company's sales are mainly concentrated in seven states in North India, with a retail presence across more than 1,50,000 outlets. It also maintains in-house manufacturing facilities at three locations.

GD Foods Chairman Nitin Seth said with Adani Wilmar's strength, the '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".

In December 2024, Adani Enterprises announced its decision to exit from FMCG joint venture Adani Wilmar.