Canadian food company McCain Foods Ltd. will acquire Falcon Agrifriz Foods’ frozen potato processing business in Gujarat, India as it looks to expand its operations in the country.
McCain Foods, one of the world’s largest manufacturers of frozen potato products , said the acquisition will add manufacturing capacity and complement its existing operations in Gujarat.
It said the acquisition represents an important next step in McCain’s long-term growth in India.
“India continues to be a priority growth market for McCain Foods,” said Pierre Danet, regional president, Asia Pacific and South Africa at McCain.
The financial terms of the transaction were not disclosed and closing of the deal is subject to the satisfaction of customary closing conditions.
Falcon Agrifriz’s purpose-built potato processing facility produces a range of frozen potato products for domestic and international markets.
McCain has steadily expanded its operations and workforce in India, and currently employs more than 940 people directly and partners with more than 2,500 farmers across the country.
It said the addition of the Falcon Agrifriz processing facility will create greater flexibility across its manufacturing network and strengthen its ability to serve customers.
Following the closing of the transaction, McCain will acquire Falcon Agrifriz’ team of more than 450 employees along with relationships with over 1,000 farmers across Gujarat.
“McCain looks forward to building on these relationships as part of its broader farming partner network in India,” the company said.
The announcement builds on McCain’s recent investment in India, including the completion of a $135-million expansion of its existing operations in Gujarat, creating jobs for 110 full-time employees and 150 contract workers.
Founded in 1957 in Florenceville, N.B. , McCain now has major production, retail and corporate operations around the world. It employs approximately 22,000 people and operates 49 production facilities on six continents.
“McCain has been part of India’s food and agriculture sector for nearly 30 years and we remain committed to its continued growth,” said McCain Foods India managing director, Aditya Krishna.
Falcon Agrifriz vice-chairman Parthajeet Patnaik said the company built the modern, fully automated processing facility in less than two years.
The company is part of Falcon Group, which has business interests across seafood, real estate, finance, minerals and metals, hospitals and frozen potato processing. Its flagship company Falcon Marine Exports Ltd. is one of India’s largest frozen shrimps exporter.
“McCain shares our values and our confidence in the growth potential of India’s frozen food market,” said Falcon Agrifriz chief executive Manish Tibrewal. “As a global leader in frozen potato products, McCain is the right company to build on the strong foundation we have established at Falcon Agrifriz and take the business forward.”
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