The successful acquisition of Shanghai Long Feng Food by Zhengzhou Sanquan Foods marks the second time the company has changed hands in a decade and the second time American food giant Heinz has lost money on an acquisition in the Chinese market, Shanghai’s First Financial Daily reports.
Zhengzhou Sanquan signed a deal with Heinz subsidiaries Country Ford Development and Heinz (China) Investment Co to buy Long Feng on 22 February, Henan-based Sanquan said in a statement to the Shenzhen stock exchange.
It is the second money-losing deal for Heinz in China after its acquisition of Meiweiyuan (Guangzhou) Food Co in 2002.
Heinz entered China in the 1980s and has expanded several times through mergers and acquisitions, though with limited success.
In the nine months leading up to January this year, Long Feng’s sales touched $27m, compared with the $51m during the same period of the previous year. Sanquan accounted for 10.9% and Long Feng made up for 3.3% of the total retail market share, according to the reports.
Source: Want China Times
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