LT Foods, known for packaged rice brands such as Daawat, announced the acquisition of a 51% stake in Golden Star Trading Inc. and its brand Golden Star through its subsidiary LT Foods Americas Inc. (LTFA). The transaction's financials were not disclosed by the company.
It was also stated that the transaction includes a call option to acquire an additional 49 percent stake at the end of three years. According to the company, the acquisition will help LTFA increase its market share in the branded Jasmine Rice segment.
LTFA is a significant non-listed subsidiary of the company, accounting for more than 35% of total revenue in North America through its flagship brand Royal.
"The acquisition of Golden Star business is an excellent fit and is consistent with our strategic plan to expand our product offerings across geographies," said Ashwani Kumar Arora, Managing Director and CEO of LT Foods Ltd.
“We are all impressed with Golden Star's brand growth trajectory, as well as its execution and operational excellence in producing Consistent Quality products and expanding its reach. We look forward to integrating the two businesses by leveraging Royal and Golden Star's brand equity as well as its well-established and robust distribution network."
Golden Star Trading Inc, based in California, is a family-owned company that sells over 60 SKUs across the United States. Golden Star's signature Jasmine Rice products, sold under the Golden Star Brand, are all GMO-free, gluten-free, natural, and/or organic.
Jasmine & Basmati Rice
Jasmine rice and Basmati rice are popular in the US Specialty Rice market. Jasmine rice is roughly three times the size of Basmati rice. Golden Star is one of the most powerful brands in the Jasmine Rice market, especially in the mainstream channel.
LTFA will be able to leverage its robust distribution network across channels to further expand its share of the Specialty Rice market across North America as a result of this acquisition, according to the company.
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