Nestlé completes acquisition of 60-% stake in China's Yinlu Foods
18 November 2011
Swiss food giant Nestlé SA yesterday said that it had completed the acquisition of a 60-per cent stake in China's family-owned Yinlu Foods Group.
The two companies also announced that they will jointly invest 2.5 billion yuan ($394 million) in Yinlu to expand current and build new production facilities in China. With its global marketing network, Nestle will expose Yinlu's brand in the international market.
In April this year, Nestlé, the world's biggest food company, said that it will is acquire a 60-per cent stake in Yinlu for an undisclosed sum.
Although both companies had disclosed the deal size, analysts had estimated the value of the stake in Yinlu, was between SFr540 million ($580 million) and SFr1billion ($1.08 billion).
Based in China's south-east Fujian province, Yinlu is an established household name in China and a leading marketer of ready-to-drink peanut milk and canned rice porridge. It is also a co-manufacturer for ready-to-drink Nescafe coffee in China.
Yinlu, which reported sales of $840 million in 2010, complements Nestlé's existing product portfolio in the country, which includes culinary products, coffee, confectionery, bottled water, milk powder and products for the food service industry.