India’s LT Foods has made a strategic move by acquiring 100% of Global Green Europe, a Hungarian producer of shelf-stable fruits and vegetables. This decision underscores LT Foods’ commitment to expanding its reach within the food and beverage industry.
The acquisition will involve an initial payment of €6 million ($6.9 million) at closing, alongside an earn-out of €1.8 million over the next two years. Additionally, the deal will entail assuming Global Green’s existing debt.
In a stock exchange announcement dated October 14, LT Foods, which owns the Royal and Daawat basmati rice brands, asserted that this acquisition would “further strengthen” its ready-to-heat and ready-to-eat offerings.
V K Arora, the executive chairman of LT Foods, emphasized the significance of this deal, stating it would not only enhance the company’s product portfolio and global footprint but would also facilitate entry into the processed canned food market. This opportunity aligns with their existing operations in Europe, leveraging synergistic advantages.
Currently, LT Foods operates manufacturing facilities in the Netherlands and the UK. Vikas Magoon, managing director of LT Foods Europe, noted that the acquisition of Global Green Europe Kft. will establish a third manufacturing hub in Europe, thereby reinforcing LT Foods’ presence in Central and Southern Europe. A manufacturing base in Hungary offers a cost advantage compared to existing facilities, enhancing the company’s competitiveness in the region.
Established in 2006 following the acquisition of Intergarden, Global Green’s Hungarian business now supplies products to over 30 countries across Europe. Its diverse portfolio features canned sweetcorn, jarred gherkins, silver skin onions, peas, and sour cherries, produced at two plants spread across 45 acres in Hungary.
The transaction encompasses Global Green International (UK) and Greenhouse Agrár, which provide support and distribution services. This deal is anticipated to close in the third quarter of LT Foods’ fiscal year 2026, suggesting an enterprise value of approximately €25 million.
Global Green reported a turnover of €40.8 million in 2022, €37.0 million in 2023, and €40.3 million in 2024, employing over 170 people. For the financial year ending March 31, 2025, LT Foods noted total revenue of Rs87.70 billion ($987.6 million), marking a 12% year-on-year increase. Furthermore, EBITDA rose by 8% to Rs10.67 billion, while profit after tax grew by 2% to Rs6.12 billion. In Q1 FY’26, which concluded on June 30, total revenue surged by 20% to Rs25.01 billion, with EBITDA increasing by 17% to Rs3.02 billion and profit after tax reaching Rs1.69 billion, a 9% rise.
In conclusion, this strategic acquisition positions LT Foods favorably amid evolving food and drink consumer trends, laying the groundwork for future growth in the competitive food and drink business landscape.