Diversified conglomerate ITC Ltd on Sunday said it will fully acquire Kolkata based spices manufacturer Sunrise Foods Private Ltd (SFPL), as the Sanjiv Puri-led firm looks to bolster its FMCG business.

The deal comes at a time when the country is under fourth-phase of the nationwide lockdown with few exceptions to combat the spread of coronavirus caused COVID-19, which has further hampered already already-slowing economy and forced businesses to cut jobs or to completely shutdown.

Reports published in late March showed that both the parties had initiated exclusive negotiations.

“The proposed acquisition is aligned with ITC’s strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths viz. deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how,” the hotels-to-tobacco conglomerate said in a release on Sunday.

While the company did not disclose the value of the deal, sources said it is valued around Rs 1,800 crore to Rs 2,000 crore.

“Sunrise is a clear market leader in eastern India in the fast-growing spices category with a rich heritage and brand legacy of over 70 years,” ITC said in a statement.

Over the years, the brand has built a loyal consumer franchise, anchored on a differentiated product portfolio tailored to regional tastes and preferences, both in the basic and blended spice segments, it added.

“The deep consumer connect and distribution strength of SFPL in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company’s agribusiness and its pan-India distribution network, will provide significant value creation opportunities for the company, ” it added.

ITC further said the proposed transaction is also in line with its “philosophy of enhancing the competitiveness of agri value chains in India whilst making a meaningful contribution to enhancing farmer incomes”.

“Finalisation of the SPA along with related processes were completed during lockdown conditions, reflecting the company’s agility and resilience in dealing with the new normal,” ITC said.

According to industry sources, JM Financial was the exclusive advisor to Sunrise.