Tasty Bite Eatables Ltd shares were trading up 3.5% at Rs 5,836.15 on Wednesday, after rising more than 8.5% to hit the day’s high of Rs 6,137, on the news that the company is set to be acquired by the US based confectionery and food major Mars Inc. Mars Food, a unit of the American chocolate major Mars Inc, had signed an agreement to acquire Preferred Brands International, which makes and markets Indian and Asian food products under the Tasty Bite brand.
Tasty Bite Eatables Ltd, the subsidiary of Preferred Brands International manufactures its products at a facility located in Pune. Tasty Bite Eatables Ltd will continue to remain listed on the Bombay Stock Exchange after the acquisition is completed, according to a statement by Mars Food. The deal is expected to be completed the fourth quarter of 2017, subject to regulatory approvals.The amount involved in the deal remains undisclosed.
Preferred Brands International also has a significant food-service business under which it supplies food products to other food manufacturers and quick service restaurants in India.
Mars Food has a product portfolio consisting of ready-to-eat products, dry rice, sauces, meal kits and spices under brands such as Uncle Ben’s, MasterFoods and Dolmio. Tasty Bite has similar offerings but with a focus on vegetarian food and Indian and other Asian cuisines.
Explaining the rationale for the deal Fiona Dawson, global president of Mars Food, said, “Tasty Bite is a fast growing Indian/Asian dinner time brand. Upon closing of the acquisition of Tasty Bite, Mars Food will expand our all-natural vegetarian offerings in the US, and leverage Tasty Bite’s strong product development pipeline, flavour expertise, and strategic sourcing of quality ingredients throughout our portfolio.”
Tasty Bite Eatables Ltd believes that the deal augurs well for the company. According to the CEO of Tasty Bite Ltd, “Mars Foods’ strong brand portfolio, global infrastructure, and shared values make it well-positioned to take Tasty Bite to the next level.”