US: Heinz takes US$60m charge on Foodstar acquisition
Heinz sees Foodstar growth
Heinz has said that third-quarter earnings will be hit by an early payout of US$60m in connection to its 2012 acquisition of Chinese soy sauce maker Foodstar.
Quarterly earnings are expected to be reduced by $0.04 a share.
The payment, which is in addition to the $165m purchase price, was calculated based on Foodstar's performance. The payment to Foodstar's previous owners - Transpac Industrial Holdings and various Transpac Funds - is 20% higher than Heinz' original provision. The company attributed the disparity to the "outstanding financial performance" of Foodstar in China.
"Heinz has received a strong return on our investment in Foodstar, which is well-positioned to deliver continued growth in China's $4bn soy-sauce market," Heinz's CEO William Johnson said. "Foodstar has delivered excellent results and has performed well beyond our expectations since joining Heinz."
In November, Heinz said its second-quarter profit rose by 22% thanks to growth in emerging markets and a lower tax rate.
- Mead Johnson wrestles "irrational" Chinese market
- Campbell Soup Co.'s M&A plans should avoid fresh
- On the money: Unilever aims to get food growing
- 10 things to learn: Campbell's plans for growth
- Interview: Seabrook Crisps chief on MBO
- Hain Celestial buys plant-based food firm Mona
- Danone eyes "return to growth" in fresh dairy
- Post, TreeHouse "in talks over ConAgra own-label"
- Nestle replaces India MD after Maggi scandal
- UPDATE: Danone merges Dumex with Mengniu