Nestle to buy 60% interest in Chinese confectioner
July 11, 2011
VEVEY, SWITZERLAND — Nestle has entered an agreement to acquire 60% of Hsu Fu Chi, a manufacturer and distributor of confectionery products in China. The Hsu family will own the remaining 40%.
“This proposed partnership will greatly reinforce our presence in China,” said Paul Bulcke, chief executive officer for Nestle. “It combines Hsu Fu Chi’s strong brands, its large portfolio of products at affordable price points, its efficient operations and entrepreneurship with our proven innovation and renovation capabilities, supported by our R.&D. centers in China. It also demonstrates our long-term commitment to China and enhances our ability to grow our portfolio of international and local brands in this dynamic market.”
Nestle has had a presence in China for more than 20 years and has 23 factories, two R.&D. centers and 14,000 employees in the country. Hsu Fu Chi produces sugar confectionery, cereal-based snacks, packaged cakes and the traditional Chinese sachima snack.
“We are delighted to partner with Nestle,” said Hsu Chen, chairman and c.e.o. for Hsu Fu Chi. “Their offer is recognition of the strength and quality of our company and a very attractive proposition for our shareholders. Together with Nestle, we will accelerate the development of the Hsu Fu Chi brand, its production and distribution capabilities and ensure Hsu Fu Chi’s continued growth momentum and brand legacy for the future.”
The transaction is still subject to regulatory approval in China.