HONG KONG — Nissin Foods Co. Ltd. has agreed to acquire 100% equity interest in Gaemi Food, a snacks company based in South Korea, for KRW 48,000 million ($35 million) from Sung Gyung Food Co., Ltd. Gaemi Food, once the transaction is closed, will become a wholly-owned subsidiary of Nissin.

Gaemi manufactures crispy roll snacks exported to over 20 countries, including Australia, China, Indonesia, Japan, Thailand, Taiwan, the United States and Vietnam. The company had revenue of about KRW 20,150 million ($14.6 million) in the year ended Dec. 31, 2023. The acquisition fits into Nissin’s plan to develop a non-noodle business to generate synergies with the instant noodle business.

Nissin Foods will make an upfront payment of KRW 14,400 million ($10.5 million). The remaining payment of KRW 33,600 will be payable by the closing date. The transaction’s closing is conditional upon fulfillment or waiver of conditions precedent relating to, among other things, certain operational matters of Gaemi Food, contained in the share purchase agreement. If all the conditions precedent are not fulfilled or waived by Nov. 30, the share purchase agreement will terminate.