LT Foods Expands in Europe with Strategic Acquisition of Global Green Europe Kft.

LT Foods Limited acquires Hungary-based Global Green Europe Kft. for EUR25 million, expanding its European footprint in ready-to-eat and canned food market. The move strengthens LT Foods' presence in Europe and aligns with its global diversification strategy. The company's acquisition includes key distribution and support entities.

In a strategic move to bolster its presence in the European market, LT Foods Limited, a global FMCG giant known for its packaged foods, has completed the acquisition of Global Green Europe Kft., a Hungary-based canned food manufacturer. The deal, valued at an enterprise worth of approximately EUR25 million, marks a pivotal enhancement in LT Foods' ready-to-eat and ready-to-heat segments, according to their recent press release.

The acquisition, to be executed through LT Foods Europe Holdings Limited, involves an initial payment of EUR6 million at the closure, with an additional EUR1.8 million disbursed over two years via an earn-out mechanism. The deal also includes taking over the borrowings of Global Green and encompasses subsidiaries Global Green International (UK) Limited and Greenhouse Agrar Kft., which serve as distribution and support arms. This transaction remains pending subject to foreign direct investment clearance in Hungary.

Global Green Europe Kft., which originated in 2006, has established itself as a prominent producer of canned and jarred foods, operating extensively across Europe with sales in over 30 countries. Executive Chairman V.K. Arora hailed the acquisition as a significant step in diversifying LT Foods' product offerings and strengthening its market positioning. Additionally, the new Hungarian base will complement existing operations in the Netherlands and the United Kingdom, potentially enhancing cost efficiency and market reach for the company.

(With inputs from agencies.)