Who is acquiring the gourmet popcorn brand 4700BC?

Marico is acquiring a 93.27% stake in Zea Maize Private Limited, the company that owns the gourmet popcorn brand 4700BC.

What is the total consideration for the acquisition of 4700BC?

The all-cash transaction for the 93.27% stake in Zea Maize Private Limited is for a total consideration of ₹226.8 crore.

How will PVR INOX use the proceeds from the sale of 4700BC?

PVR INOX will use the proceeds from the sale to reduce its debt and invest in its core business of cinema exhibition.

Home / Business and Economy / Marico Buys Popcorn Brand 4700BC for ₹226.8 Cr

Marico Buys Popcorn Brand 4700BC for ₹226.8 Cr

26 Jan

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Summary

Marico acquires PVR INOX's 93.27% stake in Zea Maize (4700BC).
The all-cash transaction totals ₹226.8 crore for the gourmet popcorn brand.
PVR INOX will use sale proceeds to reduce debt and invest in cinema business.

Marico has finalized an agreement to purchase a 93.27% stake in Zea Maize Private Limited, the owner of the gourmet popcorn brand 4700BC. This all-cash transaction amounts to ₹226.8 crore and is anticipated to conclude within 30 days. Marico also holds the option to acquire the remaining stake after three years, contingent on specific milestones and agreements.

PVR INOX, having invested in the brand over a decade ago, stated that 4700BC is entering a new growth phase requiring a dedicated FMCG focus. Gaurav Sharma, CFO of PVR INOX, noted the brand's expansion beyond cinemas into a recognized FMCG product. He believes Marico's extensive FMCG capabilities will better support its future expansion.

This sale represents a strategic move for PVR INOX to monetize a non-core asset and unlock shareholder value. The proceeds will be used to reduce debt and bolster investments in their primary cinema exhibition business. Saugata Gupta, CEO of Marico, expressed enthusiasm for 4700BC, seeing it as a premium brand with strong consumer connection and innovation potential, aligning with Marico's food category ambitions.