India-based rice business LT Foods, known for its Daawat brand, has acquired a 51% controlling stake in US peer Golden Star Trading for an undisclosed sum.
The deal, done through the Indian firm’s US subsidiary LT Foods Americas (LTFA), sees LT take control of a California-based, family-owned business established in 1989.
Golden Star Trading sells jasmine rice under the brand Golden Star and has a turnover of US$55m.
Under the terms of the transaction, New Delhi-headquartered LT Foods has the option to buy the remaining 49% of the business at the end of three years.
The Indian company is keen to expand in North America on the back of the growth of its operations there, which sells the basmati rice brand Royal.
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LT Foods CEO and managing director Ashwani Kumar Arora said the acquisition of the Golden Star business allows the business to diversify into the jasmine rice segment.
“We all are impressed by Golden Star’s brand growth trajectory and the execution, and operational excellence, to produce consistent quality products and expand its reach,” he said.
“We are excited about this expansion and we also look forward to integrating the two businesses by leveraging the brand equity of Royal and Golden Star as well as its well-established and robust distribution network.”
Golden Star Trading president Christina Wong said: “We have nurtured the Golden Star brand for more than 30 years now and were looking for the right partner to associate with our brand. In LTFA, we found the perfect strategic partner.”
In January last year, LT Foods took a minority stake in Dutch organic food business Leev.
The company reported revenues of INR46.44bn (US$603.9m) in its fiscal year ended March 2021, up 12% on a year earlier.
