Bright Food said to pay a $400 million for Manassen stake(1)
A clerk stacks boxes of Bright Food Group Co.'s dairy drink at a supermarket in Shanghai, China. Photographer: Qilai Shen/Bloomberg
Bright Food Group Co., China’s second-largest food company, agreed to pay about A$400 million ($416 million) for a 75 percent stake in Australia’s Manassen Foods, according to two people familiar with the deal.
The state-owned Chinese foodmaker will buy the stake from Champ Private Equity in a deal that gives Manassen, maker of Albatros bread and Harringtons chocolate, an enterprise value of about A$530 million, said the people, who declined to be identified because the negotiations are private. The companies are “finalizing the details” of the transaction, said Pan Jianjun, a Shanghai-based spokesman for Bright Food.
The transaction would be the biggest overseas investment in the food industry by a Chinese company since at least 1980, according to data compiled by Bloomberg. Bright Food Chairman Wang Zongnan is adding Manassen to boost overseas sales after failing in attempts to buy French yogurt maker Yoplait SAS and CSR Ltd.’s sugar unit.
“It makes sense for Bright Food to pursue overseas acquisitions in resource-rich countries, such as Australia,” said Wu Zhengwu, an analyst with AJ Securities Co Ltd. in Shanghai who recommends buying stock in unit Bright Dairy & Food Co. “It will help diversify its portfolio and boost its image overseas as a major Chinese foodmaker.”
Expansion Plans
Bright Food plans to list the business in Hong Kong in three years, said one of the people.
The Chinese foodmaker will sell its products through Manassen’s network in Australia, Pan said. Bright Food will also import Manassen’s brands into China, he said.
