Chinese Group Takes 20% Stake in French Dairy Business
Biostime International Holdings, a supplier of pediatric nutritional and baby care products in China, is acquiring a 20% stake in French dairy group Isigny Sainte Mère for Eur20 million. ISM will use the investment, as well as financing from other sources, to build a new infant formula production and packaging facility, so increasing its total infant formula capacity up to 50,000 tons by 2016. Biostime has agreed to purchase 18,000 tons of finished products per year from ISM.
The co-operation between the two companies began in 2011, when ISM started supplying infant formula made from milk sourced from the Normandy region of France to be distributed by Biostime in the Chinese market.
The new agreement will also strengthen co-operation in the field of research and development between Biostime and ISM, including the new generation of innovative production process technology, innovative nutritional components application in infant formulas and scientific analysis and quality testing technology, in order to ensure continuous quality of Biostime’s infant formulas distributed in the Chinese market.
Luo Fei, chairman and chief executive of Biostime, says: “Looking forward to the future, Biostime needs to secure sufficient and sustainable supply of high quality milk source from Europe and continue to upgrade its infant formula process technology and innovative formulas. Therefore, we are very proud to have the opportunity to participate in ISM’s infant formula capacity extension project through equity investment and financing. We believe this will enable both parties to deepen cooperation while ensuring a long term and stable supply of high quality infant formulas and meet the growing market demand in China.”
ISM processed about 250 million lites of milk and had a turnover of approximately Eur250 million in 2012, with around 42% of output exported. ISM currently employs 708 people, and was the first company to implement the full spray-dry technology in France,
Biostime’s product portfolio includes premium probiotic supplements for children, infant formulas and dried baby food products marketed under the brand name of Biostime, and baby care products marketed under the brand name of BMcare. Biostime has been listed on the main board of The Stock Exchange of Hong Kong since December 2010.
