American food company HJ Heinz is set to sell its packaged frozen food business Long Fong to China-based frozen food manufacturer Sanquan Foods for an undisclosed amount.
The move is a part of Heinz's strategy to de- emphasize non-core frozen food businesses outside the US.
Heinz Long Fong, which operates as a subsidiary of Heinz (China) Sauces & Condiments, produces and sells frozen dim sum.
Sanquan Foods has signed the acquisition deal with Heinz's subsidiaries - Country Ford Development and Heinz (China) Investment.
Sanquan Foods plans to fund the acquisition, which is expected to be completed within the next four months, through internal cash.
Sanquan Foods is involved in the production, distribution, and export of frozen food products made of wheat flour and rice in China. Its products include quick-frozen glutinous rice balls, boiled dumplings, rice dumplings, and flour pastries.
HJ Heinz is involved in the production and distribution of foods including Heinz ketchup, sauces, meals, soups, snacks and infant nutrition; Ore-Ida potato products; Weight Watchers Smart Ones entrées; TGI Friday's snacks; and Plasmon infant nutrition.
