Ahmedabad: Promoters of Havmor Ice Cream Ltd. (HIL) have agreed to a 100% acquisition by LOTTE Confectionery. After the acquisition of Havmor, LOTTE Confectionery will start its ice cream business in the Indian market. LOTTE Confectionery has decided to acquire 100% of shares of HIL, during its Board of Directors meeting held on the 23^rd of November. The transaction is to acquire 100% share purchase, and the purchase price is INR 1020 crores. The Share Purchase Agreement has been executed in the afternoon of 23^rd November.

Founded in 1944 and Headquartered in Ahmedabad, Gujarat;Havmor boasts a significant parlor network operating across 14 states in India. The company manufactures 150 kinds of products from two plants and sells from around 30,000 dealers.

LOTTE Confectionery was one of the first Korean food & beverage companies to enter the Indian market in 2004. Since then, the US$80 Billion LOTTE Confectionery has  established  choco-pie factories in Chennai and Delhi. Last year, LOTTE Confectionery reached a market share reached 90% in the Indian choco-pie market by making active investments.

Speaking on the developments Pradeep Chona, Chairman & Ankit Chona, Managing Director said “This decision was a very difficult one to make. It’s a brand that we have nurtured with our team for over 73 years. But we believe that LOTTE Confectionery is the right brand to take the company to the next level.”

LOTTE Confectionery plans to expand its market power from the northwest region to all across India with this entry into the Indian ice-cream market.

Havmor will continue to operate its signature chain of restaurants and eateries across Gujarat as well as it’s signature brand and concept café – Huber & Holly.

Havmor worked with it’s sole financial advisors – KPMG, alongside Veritas Legal and Dhruva Tax consultants on the deal. The entire deal will be concluded in a weeks’ time.

DeshGujarat