Devyani International Sells 'Get-A-Whey' Ice Cream Owner to Heritage Foods

CONSUMER-PRODUCTS

Overview

Devyani International's subsidiary, Sky Gate Hospitality, has sold its entire 51% stake in Peanut Butter and Jelly Ltd, the owner of the health-focused 'Get-A-Whey' brand, to Heritage Foods. The divestment means Peanut Butter and Jelly is no longer a subsidiary of Devyani International. This move realigns Devyani International's brand portfolio following its acquisition of Sky Gate last year.

Devyani International Ltd. announced Thursday that its subsidiary, Sky Gate Hospitality, has finalized the sale of its entire 51% equity stake in Peanut Butter and Jelly Pvt. Ltd. to Heritage Foods. Peanut Butter and Jelly is the entity behind the health-focused 'Get-A-Whey' brand, known for its high-protein, no-added-sugar ice creams and desserts.

Strategic Divestment

The transaction, executed via a Share Purchase Agreement, immediately renders Peanut Butter and Jelly no longer a subsidiary of Sky Gate Hospitality or Devyani International. This divestment marks a strategic repositioning for Devyani International, which had acquired Sky Gate Hospitality last year. Sky Gate Hospitality also holds stakes in brands like Biryani By Kilo and Goila Butter Chicken.

Contextual Moves

The sale occurs shortly after Devyani International announced plans to merge with Sapphire Foods through a share swap. This proposed merger, if approved, aims to create one of the largest quick-service restaurant chains, with potential revenues exceeding $1 billion. Both Devyani International and Sapphire Foods operate as major franchise partners for Yum! Brands, managing popular outlets such as KFC and Pizza Hut.

Market Outlook

Recent analyst sentiment towards the quick-service restaurant sector has been mixed. Macquarie, for instance, recently revised its price targets for Devyani International, Westlife Foodworld, and other QSR stocks, reflecting a cautious outlook on certain aspects of the industry.

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