Heinz is to enter the soy sauce business in China through the acquisition of local firm Foodstar from private-equity fund Transpac Industrial Holdings.
The US food giant is to pay US$165m for the business, with the potential for a further payment in 2014 based on the performance of the Chinese firm.
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Heinz chairman, president and CEO Bill Johnson said the acquisition of Foodstar would help the group “accelerate” its growth in markets like China.
“Foodstar’s leading brands have strong equity with Chinese consumers and they are a natural fit with our core global capabilities in sauces and condiments,” Johnson said.
Heinz, which markets Amoy soy sauces in markets around the world, including the UK, said China’s retail soy-sauce market was worth $2bn and growing at 7-8% a year.
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