H.J. Heinz (NYSE.HNZ) is making a foray into China’s growing soy sauce market after agreeing to acquire Chinese soy sauce maker Foodstar from private equity firm Transpac Industrial Holding (SIN.T55), Wall Street Journal reported. Heinz announced on Monday it will pay US$165 million at the closing of the deal, with a potential performance-based payout in 2014. Heinz and other food processors have been focusing on emerging markets like China as sales lag in more established markets such as the US and Britain. The maker of ketchup and baked beans already owns a nutrition business and Long Feng, a frozen dim sum brand, in China. Heinz expects the purchase of Guangzhou-based Foodstar to raise its annual sales in China to about US$300 million. Foodstar has four factories and 2,500 employees in China, with a new manufacturing plant under construction in Shanghai. China’s retail soy sauce market is expanding 7-8% a year, according to Heinz.
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