Mars Food, a segment of Mars Inc., has signed an agreement to acquire majority stake in Preferred Brands International, a manufacturer and marketer of ready-to-heat Indian and Asian food products sold primarily under the Tasty Bite brand, for an unspecified amount.
While a majority of sales of Tasty Bite products occur in North America, Preferred Brands International also makes products that are sold through retailers in the U.K. and Australia and through food services in India.
Tasty Bite branded products are manufactured at the company’s manufacturing facility in Pune and a majority of the products are exported to the U.S. Preferred Brands is also present in the food service business under which it supplies food products to other food manufacturers and quick-service restaurants in India.
Shares of the company’s subsidiary, Tasty Bite Eatables, rose 9.71% to close at ₹5,645.95 on Monday on the BSE, taking its market capitalisation to ₹1,449 crore. The price has seen a 52-week low of ₹2,800 and a high of ₹5,933. This subsidiary will continue to be listed after the acquisition, Mars Foods said in a statement.
‘Natural complement’
“Tasty Bite’s broad range of dinner-time products, focused on Indian and Asian cuisines, makes it a natural complement to our existing portfolio,” said Fiona Dawson, global president, Mars Food.
“Upon closing of the acquisition..., Mars Food will expand our all-natural vegetarian offerings in the U.S., and leverage Tasty Bite’s strong product development pipeline, flavour expertise, and strategic sourcing of quality ingredients throughout our portfolio,” she said.
Mars Food, with brands such as Uncle Ben’s, Masterfoods, Dolmio and Seeds of Change
Ashok Vasudevan, CEO, Tasty Bite said, “Mars Foods’ strong brand portfolio, global infrastructure, and shared values makes it well-positioned to take Tasty Bite to the next level.”
The acquisition of Preferred Brands International is subject to applicable regulatory approvals and is expected to close by end of 2017.
