FDBusiness.com

Bright Food to Acquire 60% of Weetabix

 Breaking News
  • UK Restaurant Numbers Drop Again as Consumer Tastes Shift Britain’s restaurant numbers have fallen for the sixth quarter in a row, the new edition of the Market Growth Monitor from CGA and AlixPartners reveals. Independent operators have borne the brunt of the closures with group-owned restaurants proving more resilient despite some major brand failures. The quarterly survey of the country’s supply of licensed premises reports a 3.4% drop in [...]...
  • Molson Coors Commits to Reduce Plastics in Packaging Molson Coors in the UK and Ireland is removing the plastic packaging from its Carling and Coors Light brands, as part of new global packaging goals. The brewer will remove the plastic film wrap from large multipacks by the end of March 2020, replacing the plastic wrap with 100% recyclable fully enclosed carton board. By [...]...
  • Carlsberg Group Upgrades Full Year Operating Profit Outlook Carlsberg Group has delivered organic operating profit growth of 17.7% for the first half of 2019 with reported growth of 18.2% to DKr 5.17 billion (€693 million). Organic net revenue growth was 4.2% and on a reported basis net revenue rose by 6.5% to DKr32.99 (€4.42 billion). Operating margin improved by 160bp to 15.7%. Reported net [...]...
  • Diageo Forms New Rum Joint Venture Diageo and Corporación Cuba Ron, a leader in the production of premium Cuban rums, have created a joint venture – Ron Santiago. The joint venture will have exclusive global distribution rights to Santiago de Cuba, a premium Cuban heritage rum brand. Globally, premium and above rum segments are growing ahead of the category overall, with premiumisation [...]...
  • Stirring Times For US Yogurt – Innovation is Vital in a Changing Consumer Environment Over half of all U.S. consumers now buy yogurt as part of their typical grocery basket, according to a new report from Innova Market Insights, but their habits appear to be evolving. Convenience themes are becoming increasingly important, for example, with 17% of consumers naming this as a significant choice factor in 2018, which is [...]...

Bright Food to Acquire 60% of Weetabix

Bright Food to Acquire 60% of Weetabix
May 04
10:31 2012

Bright Food, one of China’s largest food groups, is acquiring 60% of Weetabix Food Company from private equity firm Lion Capital for an enterprise value of £1.2 billion. The remaining 40% of the shares will continue to be held by Lion Capital and management. The transaction is subject to regulatory and government approvals in China as well as certain anti-trust approvals. Completion of the transaction is expected in the second half of 2012. No further financial details of the transaction are being announced.

Weetabix is the second largest branded manufacturer by value of ready-to-eat cereals and cereal bars in the UK. The company’s portfolio of household brands features the market-leading brand Weetabix, and also includes Weetaflakes, Oatibix, Oatiflakes, Seriously Oaty, Ready Brek, Weetos and Alpen, the leading UK muesli brand. Weetabix’s branded cereal business is enhanced by its number two position in the manufacturing of own label cereals for retailers in the UK. In addition to its strong presence in the UK, the company has operations in North America, South Africa, Germany and Spainand exports to more than 80 countries around the world. Weetabix employs about 1,800 people worldwide and in 2011 generated sales of over £460 million.

Bright Food’s landmark acquisition is an exciting move by the company, signalling its entry into both the UK and global food markets through the iconic Weetabix brand. The transaction will represent the largest overseas acquisition by a Chinese company in the food and beverage sector. The purchase also supports Bright Food’s strategy of buying famous international brands, developing advanced technology and taking strong competitive positions in each of its markets.

Bright Food is committed to driving the global growth and success of the Weetabix business, with a focus on the potential in Asia and especially in China, to take advantage of the growing appetite in the country for packaged and convenient healthy foods. Bright Food has extensive experience across all aspects of the food industry spanning the primary (agriculture/ farming), secondary (manufacturing of food products) and tertiary (retail and distribution) industries. In addition, it owns a number of well-known trademarks and branded products in Asia’s food processing industry. Bright Food will also offer an excellent ‘route-to-market’ through its extensive retail platform. In 2011, Bright Food generated revenue of $12.2 billion and had an EBITDA of $1.2 billion.

Lyndon Lea, partner of Lion Capital, comments: “The acquisition of Weetabix in 2004 was the first investment of Lion Capital and launched our strategy of investing in high quality consumer brands. Over the eight years that we have owned Weetabix it has generated top-line growth that has outpaced the broader cereal market as a result of increased investment behind the brands and innovation. We are excited to continue our journey with the Weetabix brand, which has been an enormously successful investment, as we extend the business into China in partnership with Bright Food.”

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 11, 2019Packaging Innovations & Luxury Packaging London 2019
  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements