Agro Tech Foods Ltd (ATFL) will acquire the entire equity stake in Del Monte Foods Private Ltd (DMFPL) through a share swap transaction valued at ₹1,300 crore.

DMFPL is a joint venture between Bharti Enterprises and DMPL India Ltd (owned by Del Monte Pacific Ltd).

The Bharti group firm has a 59.29 per cent stake in the ketchup and sauce maker; DMPL India holds the remaining 40.71 per cent.

Under the terms of the deal, both Bharti Enterprises and DMPL will receive shares of ATFL as consideration and will become public shareholders of the latter.

ATFL said it would also acquire an exclusive, perpetual licence for the Del Monte brand in India, ensuring long-term access to the brandname which will enable it to expand its consumer base.

DMFPL operates in several categories, including dips and spreads, ketchup and sauces, dried and packaged fruits, and beverages. It competes against Godrej Agrovet, Patanjali Ayurved, Dabur and Hindustan Unilever among others.

The Samara Capital-backed ATFL said in a regulatory filing that it will issue 1,33,27,589 shares on a preferential basis to the sellers at a price of ₹975.5 apiece. After the shares are issued, various Bharti entities will hold a combined 20.95 per cent stake in ATFL. DMPL India Ltd stake will stand at 14.39 per cent.

ATFL is also rebranding itself as “Sundrop Brands’, which it said will reflect a renewed commitment to its growth aspirations under new ownership.

The company has appointed Nitish Bajaj as its group managing Director. Bajaj brings over 28 years of experience in consumer products and brand management. His previous roles include CEO of the consumer products division at Piramal, senior vice president of marketing at CEAT Tyres, and leadership roles with Reckitt Benckiser, Ranbaxy Global Consumer Healthcare, and Heinz India.

As part of this transaction, ATFL will also secure access to Del Monte’s manufacturing and R&D facility in Hosur, Tamil Nadu and in Ludhiana, Punjab.