U.S.-based H.J. Heinz Company has completed its acquisition of Guangzhou-based Foodstar, a manufacturer of premium branded soy sauces and fermented bean curd.
Heinz acquired the Chinese company from Transpac Industrial Holdings Ltd., a private equity holding company, and various Transpac Funds. The purchase price consists of a cash payment of USD165 million and a potential earn-out payment in 2014 based on the performance of the business.
Foodstar's Master Weijixian premium soy sauce brand is a leader in Weijixian soy sauce in the southern region of China. Foodstar's Guanghe fermented bean curd, a popular flavor enhancer that is used in cooking and on food, is also a strong brand in the region.
Heinz first announced the Foodstar agreement on June 21, 2010. The acquisition of Foodstar includes four manufacturing sites with 2,500 employees in China and a fifth manufacturing facility that is under construction in Shanghai. Heinz expects the acquisition to boost its annual sales in China to about USD300 million in the first full year.
Through the acquisition, Heinz gains a share of a retail soy sauce market in China that is growing at reported rate of 7% to 8% a year.