03 May 2012

Bright Food Acquire 60% Of Weetabix

Bright Food, one of China’s largest food groups, and funds advised by Lion Capital have announced that an agreement has been reached whereby Bright Food will acquire 60% of the share capital of Weetabix for an Enterprise Value of £1.2bn.

The remaining 40% of the shares will continue to be held by Lion and management. The transaction is subject to regulatory and government approvals in China as well as certain anti-trust approvals. Completion of the transaction is expected in the second half of 2012. No further financial details of the transaction are being announced.

Bright Food's landmark acquisition is an exciting move by the company, signalling its entry into both the UK and global food markets through the iconic Weetabix brand. The transaction will represent the largest overseas acquisition by a Chinese company in the food and beverage sector.

Commenting on the purchase, Zongnan Wang, Chairman of Bright Food, said: "As a leading business in China's food industry, we are delighted to become the majority shareholder in Weetabix. This company has an excellent portfolio of brands including the famous British cereal brand, Weetabix, and also other category-leading brands such as Alpen and Ready brek. With its best in class production standards and excellent track record for innovation, the business is poised to achieve strong and sustainable long term revenue and profit growth.

"We are excited by the many growth opportunities for the business, especially in international markets, and Asia in particular. With Bright Food's strong resources and our expertise in both the Chinese and broader international markets, we are excellently placed to develop the Weetabix business. We value the expertise of Weetabix's management and employees and look forward to collaborating with them and Lion Capital to realise the full global potential of the Weetabix family of brands."

(CD/GK)