Floriculture major Karuturi Networks Ltd announced the acquisition of Kenya-based Sher Agencies, the world’s largest producers and exporters of roses. The total size of the deal is around 50 million euros and the funding is mobilized partly through FCCB issue and partly through internal accruals.
This acquisition will enhance the total production capacity of the company from the current 115 million stems to 665 million stems per annum rendering Karuturi as the world’s largest and low cost producers and exporters of roses. The company said its production capacity is expected to increase to one billion stems by 2010. With this acquisition, the company is hoping to achieve a turn over of Rs.1,000 crore by 2010.
Sai Ramakrishna Karuturi , who was appointed as new director of Sher Agencies, has said that this acquisition combines synergies of both the companies and will endeavor to attain highest standards both in terms of market capitalization and employment generation. The new board has proposed to rename the company as Sher Karuturi Ltd.