Bright Food finally seals overseas acquisition
China's Bright Food Group is set to acquire a 75% stake in CHAMP Private Equity-controlled Manassen Foods, finally making a breakthrough in its long-held but often thwarted ambitions to take a significant step into overseas markets. The parties did not disclose the size of the deal, though reports estimated the Australian company’s worth at more than A$500 million ($525 million). If the transaction is approved by regulators, Bright Food would own brands including Jelly Belly Jelly Beans, Carr’s Water Crackers and Margaret River Dairy.
Upon Bright Food's purchase, a group comprising company founder Roy Manassen and senior management is expected to retain a 15% stake, while CHAMP will hold the remaining 10%. The private equity firm, which purchased a 51% stake in Manassen five years ago, had originally planned to exit the company via a dual-track IPO and sale, but shelved the scheme due to the weak equities market.
While Bright Food is a household name in China, the firm has found overseas M&A challenging. Its most public defeat came in March of this year, when the 50% stake held by PAI Partners in global yogurt brand Yoplait was snapped up by General Mills. Despite making a bid that valued Yoplait at $2.4 billion, Bright Food was snubbed in favor of the US firm, which acquired the 50% stake for a price that valued Yoplait at $2.2 billion.
Likewise, Bright Food last year lost its year-long battle to purchase CSR's sugar and bioethanol business Sucrogen in New Zealand, and negotiations over the acquisition of Britain's United Biscuits reportedly came to nothing. Bright Food sought to even its odds by reportedly engaging in negotiations with Blackstone and TPG to purchase US nutritional supplement retailer GNC Holdings - which was said to worth as much as $3 billion - yet it walked away from the table in January.
The string of failed deals seemingly pushed the firm into overdrive. Earlier this month, when Bright Food was said to be discussing possibilities with both Manassen and Foster's Group for its Treasure Estate Wines, company chairman Wang Zongnan told global media that an acquisition would come in Europe or Australia within six months. He has now been vindicated.
Manassen not only represents a trophy in five-year-old Bright Food's portfolio, but also a learning tool. The company stated that it would use its network to more widely distribute Manassen's products in China, and then rely on Manassen's know-how to engage with the Australian market.
CHAMP Private Equity Managing Director Cameron Buchanan told Reuters that Manassen's sale to Bright Food would give it a "logical springboard" into Asia.
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