China's Jiajia Food Group plans to invest CNY101 million to acquire a 100% stake in Langzhong Wang Zhong Wang Food Company.
On the completion of the acquisition, Jiajia Food will gain the brand and channels of Wang Zhong Wang. Under reported terms of the share purchasing agreement, the former investors of Wang Zhong Wang can no longer use the Wang Zhong Wang brand and channels or engage in the same business of the company.
Yang Zhen, chairman of Jiajia Food, said that the acquisition of Wang Zhong Wang will help Jiajia directly deploy 50,000 tons of production capacity of soy sauce and vegetable oil, respectively, in the southwestern areas of China. This move can ease its production capacity shortage and realize an expansion of a new brand.
With operation of over ten years, Wang Zhong Wang is a seasoning and sauce provider and its major products include soy sauce, table vinegar, and chicken essence.
According to Jiajia's report, the acquisition is expected to bring additional sales of over CNY100 million very year, and the additional gross profit will reach CNY30 million.