CHINA: Heinz to sell frozen food arm
Heinz sells one of Chinese assets
Heinz has entered into an agreement to sell its frozen food business in China, Long Fong Food, to frozen food manufacturer Sanquan Foods Co.
Sanquan announced its subsidiary, Country Ford Development Ltd, has reached an agreement of intent with Heinz to acquire its frozen food assets in a regulatory filing with the Shenzhen stock exchange on Friday (23 February). While the framework of the deal is still being negotiated, the acquisition is expected to close in about four months.
Sanquan said the transaction would be funded by cash on hand but did not provide further financial details.
The move will boost Sanquan's competitiveness in the Chinese market for frozen foods, the group said. In 2012, Sanquan accounted for almost 11% of frozen food sales in China.
Heinz, whose board backed a US$23bn sale to investors led by Warren Buffett last week, was unavailable for immediate comment.
After Lindt & Sprungli reported higher solid first-half results last week, just-food interviewed the Swiss chocolate group's CEO Ernst Tanner to discuss its growth in mature markets and its patient st...
- Analysis: Is Heinz, Kraft merger "a growth story"?
- Focus: Can Mars gain share in Indian chocolate?
- The challenges awaiting ConAgra's new CEO
- Why Heinz-Kraft merger could herald more deals
- The challenge of digital marketing and ROI
- Fatal explosion at French desserts firm Senagral
- Infographic: Heinz, Kraft unveil combined business
- UPDATE: Heinz, Kraft strike merger agreement
- ConAgra confirms another private-label charge
- Mondelez coy on Philadelphia sale rumours