[ET Net News Agency, 28 June 2018] Huabao International (00336) said it agreed to
acquire the entire issued shares of Jiahao Foodstuff Limited at a base purchase price of
US$694 million (equivalent to about Rmb4,466 million).
Since mid-2014, when 80% of the indirect interests in the target company was acquired by
a private equity led consortium, substantial resources have been invested to transform the
business of the target group from its origins as a family-owned and operated business to a
best-in-class, professionally managed B2B branded condiments platform. Differentiated in
its focus on the foodservice market, the target group has evolved to become a pre-eminent
supplier of condiment products to more than 200,000 restaurants across China.
The target group's core products are uniquely positioned to benefit from the
acceleration in "consumption upgrade" to higher-end condiment products, as well as the
general growth in demand for condiments. By leveraging the target group's established
sales and marketing platform and chef network, the Huabao Group will be well positioned
to benefit from these secular market trends, and to provide a fuller service to its
customers and a diversity of income source to the shareholders. (HL)