McCain Foods on Monday said it has entered into an agreement to acquire Falcon Agrifriz Foods’ frozen potato processing business in Gujarat, India. It said that this acquisition will complement McCain’s existing operations in Mehsana, Gujarat strengthening its manufacturing footprint and creating a strong platform to support future growth and serve growing domestic demand and key export markets.
The acquisition comes post McCain’s recent investment in India, including the completion of a $135 million CAD expansion of its existing operations in Gujarat.
While the company did not reveal the commercials of the transaction, it said that the acquisition is part of McCain’s long-term growth strategy in India. Closing of the transaction is subject to the satisfaction of customary closing conditions, it added.
“India continues to be a priority growth market for McCain Foods. This acquisition reflects our confidence in the Indian market and builds on nearly three decades of continued investment in our people, local operations and agricultural partnerships. By strengthening our manufacturing network, we will be better positioned to grow alongside our customers, growers and communities for the long term,” said Pierre Danet, Regional President, Asia Pacific and South Africa at McCain.
Falcon Agrifriz operates a modern potato processing facility in Gujarat, producing a range of frozen potato products for domestic and international markets. It also has over 450 employees along with relationships with over 1,000 farmers across Gujarat. Following closing of the transaction, the company said it will look forward to building on these relationships as part of its broader farming partner network in India.
“We are proud of the modern, fully automated processing facility we have built at Falcon Agrifriz in less than two years, and especially proud of the talented employees and growers who have helped bring it to life,” said Parthajeet Patnaik, Vice Chairman, Falcon Agrifriz.
Aditya Krishna, Managing Director, McCain Foods India added, “We look forward to welcoming Falcon employees and growers to the McCain network and continuing to create local employment opportunities and support regional industrial development as we enter the next phase of our long-term growth in India.”