Baring Private Equity Asia has acquired a 40% stake in the Weetabix Food Company, and will work in partnership with the British cereal manufacturer’s majority shareholder to drive expansion in the Chinese market.
Weetabix’s controlling shareholder is Bright Food, one of the largest state-owned food manufacturing companies in China. The food manufacturer’s brands – including Weetabix, Alpen, Ready-brek and Weetos – are already exported to China, alongside 86 other countries in Asia, Europe and the Middle East.
Although terms of the transaction have not been disclosed, earlier valuations of Weetabix suggest that it could be in the region of $750m.
Baring Asia founder and CEO Jean Eric Salata said: “Weetabix is an established and profitable brand in the UK, and is well positioned to take advantage of the strong consumer demand in China for high-quality and nutritious food products. We look forward to partnering with Bright Food, one of the largest food and beverage manufacturing companies in China, and its vast nationwide distribution network to expand Weetabix in China.”
Bright Food chairman Yongjie Lv added: “We look forward to taking our investment in Weetabix to its next stage with a focus on introducing the brand to China, where high quality products and proven brands are of paramount importance to consumers. We are delighted to be working with Baring Asia to execute on this strategy, benefitting from their sector experience in food and beverage, strong credentials in helping companies execute cross-border growth strategies, pan-Asia network and hands-on operational experience.”
And Weetabix CEO Giles Turrell said: “We are an established leader in the UK breakfast cereal market with an aim to become a globally recognised brand. With continued backing from Bright Food and this investment from Baring Asia, we now have an even greater opportunity to strengthen and expand the Weetabix brand internationally.”
© FoodBev Media Ltd 2024