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China’s Bright Food denies Weetabix acquisition talks

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China’s Bright Food Group has denied reports that it is in talks to buy Weetabix from private equity firm Lion Capital. Several media outlets have claimed that negotiations began several weeks ago over a deal that would value the UK-based cereal company at GBP1 billion ($1.6 million).

Pan Jianjun, a Shanghai-based spokesman for Bright Food, told Bloomberg that the company is "not in talks" with Lion. The private equity firm declined to comment.

Weetabix - which owns the Weetabix, Ready Brek and Alpen brands - accounts for 7% of the total cereal sales in the UK. It exports to more than 80 countries around the world and generated a gross profit of GBP20.4 million in 2010 off revenues of GBP449 million. Lion bought the company eight years ago and is said to have already generated a 3x return on its investment through several dividend payments.

Bright Food, one China's biggest food companies, last year finally realized its long-held ambition to gain a foothold in overseas markets with the acquisition of a 75% stake in Australia's Manassen Foods from CHAMP Private Equity. It previously tried and failed to land a number of overseas assets.

Speaking after the Manassen acquisition, Wang Zongnan, chairman of Bright Food, said the company planned further acquisitions in the sugar, dairy, wine and casual food industries.

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