US food giant H.J. Heinz has completed its acquisition of HP Foods from France’s Groupe Danone for £470m (US$820m) in cash.
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The transaction includes brands such as Lea & Perrins, the world’s number-one Worcestershire Sauce, HP sauces and a perpetual licence to market the rapidly growing Amoy Asian sauces brands in Europe. Last year, HP Foods had worldwide annual sales of approximately $300m.
The three larger brands included in the transaction are marketed primarily in Canada, the UK and the US.
The transaction includes three factories, two in the UK and one at Fair Lawn, New Jersey, which together with a head office in London employ a total of approximately 400 people. Heinz said it will not make any decisions regarding the future of the HP Foods facilities until it completes a comprehensive review in several months.
“The addition of Lea & Perrins, HP sauces and Amoy Asian sauces complements Heinz’s leadership in our core condiments and sauces businesses, especially in Europe and North America. This transaction is perfectly aligned with our strategy to focus on quality brands in three core businesses: Ketchup, Condiments and Sauces; Meals & Snacks; and Infant Nutrition,” said Heinz chairman, president and CEO William Johnson.
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By GlobalDataJohnson also said that Heinz aims to expand global sales of the HP, Lea & Perrins and Amoy brands by leveraging the company’s global retail and foodservice distribution and marketing capabilities.
