Bright Food nears Manassen Foods purchase

Citing sources close to the sales process, Reuters reported state-owned Bright Food would purchase a 75% stake in Manassen, which is best recognized for its Jelly Belly Jelly Beans, Carr's Water Crackers and Margaret River Dairy products. CHAMP sought to offload the asset either via a sale or an IPO, but decided on the former in light of Australia's ongoing market difficulties. The deal is expected to be completed this week and marks Bright Food's largest overseas acquisition.

CHAMP purchased a controlling 51% stake in Manassen in 2006, and Manassen's remaining shares are held by company management. Bright Food would buy CHAMP's shares and existing shareholders and management will continue to own the remainder of Manassen, Reuters noted. Company management is also said to remain intact.

Shanghai-based Bright Food has been aggressively seeking overseas expansion opportunities within the last year, although it has not found overseas M&A easy. In February, the company failed to land PAI Partners' 50% stake in yogurt maker Yoplait, despite being the highest bidder. It also lost out in the battle for CSR's sugar and bioethanol business Sucrogen and negotiations over the acquisition of Britain's United Biscuits reportedly came to nothing.

Last year, the company did complete the acquisition of New Zealand's Synlait Milk.

Nomura Holdings advised Bright Food on the transaction, and UBS and Bank of America Corp advised Manassen.

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• Topics
• Consumer
• Greater China
• Australasia
• CHAMP Private Equity