The parent company of Yellow Diamond chips called Prataap Snacks Ltd has reportedly announced to acquire a majority stake in Avadh Snacks Pvt Ltd., a Gujarat-based snacks manufacturer.
The advisory source behind Prataap Snacks on this transaction was Intensive Fiscal Services Pvt Ltd.
Prataap Snacks is a Mumbai-listed company and has claimed that it is going to buy out 80% stake in Avadh Snacks. The deal will be done through a combination of primary and secondary share purchases. The amount of the acquisition is worth Rs 148 crore ($21 million).
“Our acquisition of Avadh will help us accelerate our growth and deepen our presence in the key market of Gujarat,” said Amit Kumat, chief executive at Prataap Snacks.
Avadh Snacks was established in 2010 and the company’s line of products includes bhujia, chevda, fafda, gathiya, etc. and extruded pellets like wheels, cups and pasta. The company is further planning to expand in Maharashtra and Rajasthan.
Talking about Pratap Snacks, the company was launched in 2003 by Amit and Apurva Kumar and Arvind Mehta and has been backed by Sequoia Capital. It got listed on the stock market last year, with its shares gaining 26% on the first day of trading. The company is majorly involved in the manufacturing and sales of potato-based and extruded snacks, and namkeen.
The company is actively operating in three major categories in India and all products are sold under the Yellow Diamond brand.