Sara Lee buys out TTK stake in JV
27 Sep 2001
New Delhi: The US-based household products, food and beverages company Sara Lee is acquiring the 49 per cent stake of the TTK group, its Indian partner in the joint venture Sara Lee TTK.
With this the buyout, the venture now becomes a completely-owned subsidiary of Sara Lee. The joint venture has a paid-up capital of about Rs 9 crore, each share having a face value of Rs 500.
Under the deal agreement, Sara Lee will be acquiring 82,325 shares of Rs 500 each, accounting for 49 per cent equity stake of the JV from the TTK group. The US company currently holds a 51 per cent stake in the joint venture and is said to be paying a high premium on the TTK stake.
The Sara Lee TTK joint venture manufactures and markets a wide range of personal care products, including leading brands such as Brylcream and Eva, domestic hygiene products, including liquid toilet and floor-cleaners and Kiwi shoe polish.
Sara Lee recently decided to exit the bakery business in India which it had forayed into in 1998 by acquiring the biscuit business of confectionery major Nutrine. It sold off the bakery business to Vasana Agrex and Herbs Ltd of the Vasana group.
Sara Lee Corporation is a global consumer packaged goods company with more than $20 billion in annual revenues. The company has five main lines of business: Sara Lee Foods, Coffee and Tea, Household and Body Care, Foodservice and Branded Apparel. The company has operations in more than 40 countries and markets branded products in more than 140 countries.
In India, Sara Lee has another personal care products joint venture with Godrej called Godrej Sara Lee Ltd, a market leader in the insect repellent category.
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