India's IHG buys UK food producer from Duke Street
India Hospitality Group (IHC) has acquired UK-based ready-made food producer Adelie Food Holding from Duke Street Capital for $350 million. The deal – the largest overseas acquisition by an India-focused food and beverage company in six years – is said to be rooted in strong demand for quality fast food products among India’s expanding middle class.
Adelie, which employs 3,000 people across seven manufacturing bases, accounts for about one fifth of the GBP3.7 billion ($5.8 billion) UK food-to-go market, the Financial Times reported. India's food services retail industry, meanwhile, generated $8.2 billion in the year ending March 2011, according to consultancy Technopak, and is expected to grow more than 10% annually over the next five years.
IHC owns three hotels, an airline catering operation and several restaurant brands. It went public on AIM in 2006 but delisted earlier this year due to poor trading volumes.
Duke Street acquired five companies at a reported cost of GBP120 million in 2006-2007 and combined them to form Adelie. The private equity firm announced in February that it had abandoned plans to raise a EUR850 million ($1.1 billion) buyout fund and will instead seek capital on a deal-by-deal basis.
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