Bakkavör Group and Glitnir acquired a 40% stake in the company in March 2006 after co-founding Bakkavör China with the purpose of facilitating the transaction and exploring further investment opportunities in China.
Today, Bakkavör Group holds an 80% share in Creative Foods while Glitnir Bank holds 20%. Glitnir provided advice and funded the deal. The acquisition price remains confidential, the company said in a statement. The acquisition will not have a material effect on the group’s overall trading results during this financial year, it added.
Creative Foods grows produce and packs around 250 salad products in five factories and employs around 750 people, supplying supermarkets and foodservice chains in China.
Einar Gústafsson, managing director of Bakkavör Asia, said: “Creative Foods’performance has exceeded our expectations with pro-forma sales growth of 23% in 2006 and 15% in the first quarter of 2007. Increased demand for healthy, convenient quality foods in China offers us great opportunities for growth. We aim to strengthen our position in the Chinese food market, which is forecast to grow by 30% in the next four years, and gain strong foothold in the various other high-growing markets across Asia.”
Magnús Bjarnason, executive vice president, international banking, Glitnir, added: “We are very pleased with the growth in our China operations.Glitnir’s strategy is to work closely with our customers on profitable projects and the co-operation with Bakkavör is in line with that strategy. The food industry is one of the niche segments in which Glitnir aims to grow internationally and Creative Foods is a well run company with great growth potential. Our team in Shanghai has done a very good job working with the Bakkavör Asia team on the transaction.”