Mumbai: South Korea’s Lotte Confectionery Co. Ltd on Thursday said that it will be acquiring Ahmedabad based ice-cream maker Havmor Ice Cream Ltd for Rs1,020 crore (approximately $157 million).

The transaction is expected to be closed in a week’s time, the statement said.

Founded in 1944, Havmor today manufactures 150 kinds of products from two plants and sells from around 30,000 dealers. The company’s ice creams are sold in 14 states.

“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," said Pradeep Chona, chairman at Havmor Ice Cream Ltd.

Mint reported in May that Havmor had received interest from various multinationals such as Nestlé India Ltd and Hindustan Unilever Ltd (HUL).

Havmor Ice Cream Ltd is the seventh largest ice cream and frozen desserts maker in India with a 3.5% market share.

The value of the ice cream and frozen desserts segment in India grew 20% in 2016 to reach Rs10,200 crore in sales and is forecast to see a constant value compound annual growth rate of 11% over 2016-21, leading to sales of Rs17,000 crore, as per a December 2016 report by market researcher Euromonitor International.

Gujarat Cooperative Milk Marketing Federation Ltd, which sells the Amul brand, is the leading firm in the ice cream and frozen desserts segment with a 17% market share.

HUL is the second largest, with a 9.7% market share, according to the Euromonitor report.

The acquisition marks Lotte’s entry into the India ice-cream market and will give the company a larger geographic presence.

“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," the statement said.

Lotte entered India in 2004 and has since then established large scale Choco-pie factories in Chennai and Delhi.

Last year, Lotte confectionery reached a market share of 90% in the Indian Choco-pie market, according to the statement.

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.

KPMG and law firms Veritas legal and Dhruva Advisors advised Havmor on the transaction.

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