Tasty deal

London, May 29: Kirit Pathak, the Indian entrepreneur who was taken to court by his sisters, Chitralekha and Anila, over their share holdings in the family firm - Patak's - has sold the company to a British multinational, Associated British Foods, it was announced today.

The sale price was not disclosed although an agency report speculated that Patak's, which sells a range of popular Indian food items including 'Medium/Hot' Lime Pickle, could be worth as much as £200 million.

However, a source told The Telegraph: 'The asking price for the company was £200m but its books wouldn't support that figure. I would be surprised if the sale price was more than £125m-130m.'

As to why Kirit would want to sell, the source suggested: 'In India, it's different. You marry the company and die with the company. But here it's different. People want to realise their wealth. It may also have something to do with the differences Kirit has had with his sisters.'

An ABF statement said: 'Kirit Pathak will assume the role of chairman of the combined business of Patak's and Blue Dragon (owned by ABF) and Meena Pathak (Kirit's wife) will also become a director.'

The acquisition was announced by Associated British Foods - the international food, ingredients and retail group - which confirmed that it has reached agreement on the acquisition of the Patak's business from the Pathak family.

'Completion is subject to a number of conditions, including regulatory clearances, which are likely to be satisfied by the end of August 2007,' it went on. 'The business comprises the Patak's brand and assets in all countries except India. The gross assets of the business being acquired as at 2 October 2005 were £40m.'

It added: 'Patak's is a leading brand in Indian cuisine and is widely recognised for its authenticity. It was established in England in 1957 and has grown strongly in the UK and has also established a wide international presence. It manufactures, markets and distributes Indian cooking sauces, curry pastes, chutneys and other meal accompaniments from the Indian sub-continent.

'In the UK it supplies both retail and foodservice. Its major factory is in Leigh, Lancashire. Unaudited revenue for the year to 30 September 2006 was £66m.'