Goyal Salt expands product portfolio with launch of black salt
The acquisition of these iconic brands provides Inbrew with a unique platform to extend its ambition of becoming India’s trusted household beverage company
Following the strategic review of selected Popular brands of United Spirits Limited (USL), announced on 23 February 2021, the Board of Directors of USL have approved the sale and franchising of selected brands to New Delhi-based Inbrew Beverages. The transaction does not include the McDowell’s or Director’s Special brands, which will be retained by USL.
USL and Inbrew have executed definitive agreements for the sale of the entire business undertaking associated with 32 brands, including iconic brands Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov, for a total cash consideration of approximately Rs 820 crore, subject to customary adjustments.
The sale portfolio covers the entire business undertaking associated with the 32 brands, including the related contracts, permits, intellectual property rights, associated employees, and a manufacturing facility. In addition, USL and Inbrew have entered into a 5-year franchise arrangement for 11 other brands, including Bagpiper.
USL has also granted Inbrew a right, subject to certain conditions, to convert the fixed term franchise arrangement into one with perpetual rights to use and/or a call option to acquire the brands at a pre-agreed consideration.
Hina Nagarajan, Managing Director & CEO of USL, commented: “The transaction reflects the continued evolution of the management of the Popular portfolio since 2016, when the company moved to a franchise model in many states, to enable a sharpened focus on ‘Prestige & Above’. This is a significant move to reshape our portfolio in service of our publicly stated mission to deliver sustained double digit profitable top-line growth.”
The company expects to complete the transaction by the end of the quarter ending 30 September 2022.
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