Norwegian branded consumer goods supplier Orkla has signed agreements to acquire 67.8% stake in India’s Eastern Condiments.

Headquartered in Kochi, Kerala, Eastern Condiments offers a mix of non-vegetarian and vegetarian food products in the blended and single spices categories.

With a workforce of nearly 2,955 people, Eastern operates seven production facilities located across four different states in India.

Orkla’s wholly-owned Indian subsidiary MTR Foods executed the deal, which acquired the stake from members of the Meeran family and McCormick Ingredients Asia.

The Meeran family owns a 74% stake in Eastern Condiments, while McCormick holds the remaining 26% stake.

MTR Foods agreed to acquire a 41.8% stake in Eastern from members of the Meeran family.

The firm also agreed to acquire the entire ownership stake of 26% held by McCormick Ingredients Asia in Eastern Condiments.

Under the deal, the parties have agreed on a purchase price that values Eastern at Rs20bn ($269m) on a debt and cash-free basis.

Completion of the deal is subject to the approval of the Competition Commission of India.

Upon completion of the deal, Orkla intends to merge Eastern with its wholly-owned Indian subsidiary MTR.

Orkla and the two brothers, Firoz and Navas Meeran, will jointly own the combined business entity, with an ownership stake of 90.01% and 9.99% respectively.

The merger should take place 15 months after the completion of the acquisition.

Additionally, in the agreement with the Meeran brothers, Orkla will have the option to acquire the ownership of the joint entity.

With this transaction, Orkla aims to establish a platform for further growth in India in several categories.

Orkla president and CEO Jaan Ivar Semlitsch said: “This announcement marks a significant step for Orkla towards delivering on its strategy to strengthen our footprint in our core geographies.

“By joining forces, Eastern and MTR will create a solid platform in the fast-growing Indian market, based on strong local brands.

“MTR has been a great success story for Orkla. Now we look forward to continuing the journey with the Meeran brothers as partners.”