Mars Food $173 million acquisition of Preferred Brands International (Tasty Bite)

Overview:

• Mars Food has acquired Preferred Brands International for $173 million from Kagome (70%) and ASG-OMNI (30%).
• The company paid Kagome an additional Re1.133 billion for 300 shares in Tasty Bite Eatables, Preferred Brands’ listed Indian subsidiary, bringing its interest in the company to 74.23% and triggering a mandatory offer.
• The offer was set Re5323.87 per share and was carried out by Effen, a group company that is wholly-owned by Wrigley International and Mars Nederland.
• They offered to buy up to 661,190 shares or 25.77% of Tasty Bite Eatables in an arrangement managed by Morgan Stanley India.
• Mars expects the company to remain listed following the transaction and will dispose of any shares in excess of the maximum non-public shareholding. There was no minimum level for acceptance of the offer.
• Preferred Brands International’s Tasty Bite business markets shelf-stable Asian food such as meal kits, lentils and rice. The company is based in Stamford, Connecticut with its manufacturing operations conducted through its Indian subsidiary, Tasty Bite Eatables.
• With facilities including a 25-acre organic farm and the Tasty Bite Research Centre near Pune, Tasty Bite Eatables is listed both on the National Stock Exchange of India and the Bombay Stock Exchange.

Jordan Hughes - Journalist