US food processing company Archers Daniels Midland acquires India-based Geepee Agri Private
The move is part of the $61-billion Illinois-based company's strategy to build up production and secure grain procurement in times of rocketing food inflation. The deal is estimated to be worth Rs.110 Crores.
Noida-based Geepee Agri Pvt. Ltd. was majority owned by Thailand's GP Group, a business conglomerate which began in India, and Rabo Equity Advisors . The company has two plants at Kota in Rajasthan and Akola in Maharshtra.
Through recent acquisitions, Archers Daniels Midland (ADM) owns existing plants at Latur ,Dharwad and Nagpur, and by acquiring Geepee it will double the company's crushing and refining capacities in India.
GP Group and Rabo Equity Advisors have sold their entire shareholdings in the transaction.
Archers Daniels Midland has also established headquarters in India; Gurgaon, near New Delhi in the northern state of Haryana. The office will oversee ADM's operations in India and will manage sales, purchasing and administrative work in the country.
India's annual edible oil consumption is estimated at 15 million tons-valued at Rs 75,000 crore-and growing at 5-7%.
Khaitan Sud & Partners provided legal advice to the vendors. Archers Daniels Midland received legal advice from O.P. Khaitan & Co. O.P. Khaitan & Co. is a well established, reputed, skilled and professionally managed law firm based in New Delhi. The team was led by Senior Partner Mr. Gautam Khaitan and assisted by Senior Associate Mr. Arihant Jain.
Legal adviser to Archers Daniels Midland
Senior Associate Mr. Arihant Jain commented:
"The acquisition of Geepee Agri Pvt Ltd. will help ADM to increase its presence in the growing Indian market. Maharashtra is one of the country’s leaders in food processing industry. The diverse agro climatic condition and progressive farming has attracted ADM to expand its operation in that region. O.P. Khaitan & Co. had earlier assisted ADM in acquiring other edible oil units in India"