Chinese state-owned Bright Food has completed the acquisition of 60%stake in British breakfast cereal company Weetabix from its private equity owner Lion Capital,in a £720m deal.
The remaining is held by Lion Capital and the Weetabix management.
The transaction,which values Weetabix at £1.2bn,including debt,is a part of Bright Food's plan to foray into the UK and global food markets.
Bright Food chairman Wang Zongnan said that the company will boost the investment in Weetabix brands and product innovation to strengthen its development in the international markets.
"In particular,Bright Food is committed to leveraging its resources and extensive experience across all aspects of the food industry to underpin Weetabix's expansion in Asia,in particular China,"Zongnan added.
Meanwhile,Bright Food is planning to list Weetabix on the Hong Kong stock exchange,to lower pressure from debt risks.
Weetabix,founded in 1932,was family owned until it was bought by US-based Lion Capital in 2004 for £642m.The company is the second largest manufacturer of breakfast cereals and cereal bars in the UK after Kelloggs,holding a 7%share of the country's total cereals market,with annual sales in the UK totalling £100m.
Headquartered in Kettering,UK,the company exports to over 80 countries and owns brands such as Alpen,Ready Brek and Oatibix,with annual sales of more than £420m.
Bright Food is a leading Chinese conglomerate in the food industry,and is involved in agriculture,food processing,brand agency service and retail,among others.
