Fosun, Sanyuan to buy margarine maker from European GP

Founded in 1904, St Hubert is a leading player in the spreads market in France and Italy. It produces a variety of low-fat spreads for bread and cooking, with sales amounting to more than 35,000 tons every year. It also manufactures plant-based yogurts, drinks, and desserts. European GP Montagu bought the business from Dairy Crest in a management buyout in 2012.

The company, which has 213 employees, reported consolidated net turnover of EUR129 million last year. It claims to have more than 40% market share in France and almost 70% in Italy.

“The proposed acquisition also introduces healthy and innovative foods into China and is aligned with the government's policy to support and drive technological innovation,” Guo Guangchang, Fosun’s chairman, said in a statement.

As part of the deal, Sanyuan will introduce St Hubert’s food technology to China, supporting its expansion in a market where demand for healthy foods has grown strongly in recent years. Furthermore, the partnership between Fosun and Sanyuan, one of China's largest state-owned dairy groups, is a step towards mixed-ownership reform, the companies said.

Shanghai-listed Sanyuan claims to have transformed itself from a traditional food processing company into a modern dairy business. It has interests spanning the entire dairy value chain from raw milk supply through processing, transportation, and after-sales service. Its products are sold directly to consumers and to retailers and restaurant chains. Sanyuan is also a joint venture partner in the Beijing and Guangdong McDonald's franchises.

Sanyuan’s revenue rose 5% year-on-year to reach RMB5.5 billion ($870 million) in 2016, while its net profit dropped 6% to RMB105 million.

The acquisition of St Hubert requires regulatory approval in France and China.

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• Topics
• Greater China
• Trade sale
• Buyouts
• Consumer
• China
• Europe
• Fosun Group