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December 10, 2021

Investcorp backs China noodle maker Mo Xiaoxian

The Bahrain-based fund says there are “attractive opportunities” presented by China’s middle class.

Private-equity firm Investcorp has continued its deal-making in Asia with backing for China-based noodle supplier Mo Xiaoxian.

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Based in Shanghai, Mo Xiaoxian markets products including a “self-heated” hotpot and rice dishes, as well as instant vermicelli and noodles. It employs around 200 staff and sells across China through more than 700 distributors, Investcorp said. The business has a presence in more than 46,000 retail outlets, its new backer added.

“At Investcorp, we seek to invest in brands that benefit from the current shifts in consumption and with China’s growing middle class we see attractive opportunities in the innovative instant food brand sector,” Investcorp co-CEO Hazem Ben-Gacem said.

“The investment in Mo Xiaoxian is the right fit for the fund’s strategy as we continue to expand in Asia, and we look forward to working closely with the company’s management team in realising its full potential.”

Financial terms were not disclosed. Just Food has approached Investcorp to clarify the size of the stake it has acquired in Mo Xiaoxian.

The deal was done by funds managed by a joint venture set up by Investcorp, China Resources Capital Management – the private investment arm of China Resources Group – and Fung Strategic Holdings Ltd, part of the private investment arm of the families of Victor Fung and William Fung.

The transaction was concluded through Investcorp’s Asia Food Growth Fund I, a private-equity fund set up to invest in a portfolio of “food-related” companies in Asia. Mo Xiaoxian is the fund’s fourth investment. Earlier this year, through the fund, Investcorp backed Heritage Foods, a supplier of condiment and sauce brands operating in China, Singapore, Malaysia and Japan. Last November, Investcorp acquired a majority stake in Viz Branz, a Singapore food and beverage manufacturer, for an undisclosed sum.

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Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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