MTR Foods owner Orkla to buy Eastern Condiments for ~2,000 cr

Norwegian conglomerate Orkla, which owns MTR Foods, has entered an agreement to buy a majority stake in Kerala’s largest spice player Eastern Condiments for ~2,000 crore with an aim to double its spice presence in India. The conglomerate had acquired MTR Foods in 2007, which has a strong presence in the spice market and a current turnover of ~920 crore. Orkla, through its wholly owned subsidiary MTR Foods, has signed pacts to purchase a 41.8 per cent ownership stake in Eastern from members of the Meeran family and to acquire the entire ownership stake held by Mccormick Ingredients, which will give the Norweigian firm a 67.8 per cent ownership stake after completion of the transactions. Eastern is currently owned by the Meeran family, which holds 74 per cent stake, and Mccormick, which holds 26 per cent share, in the company. Following the transactions, Eastern will be merged with MTR.