Apax sells Israeli food company to China's Bright Food

A Bright Food spokesperson confirmed the acquisition to several media groups but did not disclose the size of the transaction. According to Israeli media, Tnuva is worth ILS8.5 billion ($2.4 billion).

Founded more than 80 years ago as an agricultural cooperative of 620 farming communities, the company claims to be Israel's leading food group, accounting for seven of the country's best known food brands. It distributes dairy products under the Tnuva, Emek, Yoplait and Pireus brands, as well as a range of other fresh and frozen foods.

Tnuva employs about 7,500 people in 31 locations and has sourcing agreements with 1,600 local farmers. It also has an R&D center and collaborates with Yoplait in developing yogurt products suitable for the Israeli palate.

The company reported a net profit of ILS520 million in 2013, down 55.8% year-on-year, while revenue rose 4.4% to ILS7.17 billion. Tnuva said that profit fell because the 2012 figure was inflated by one-off property sales.

The complex ownership structure deterred prospective investors in the business but Tnuva opened itself up to a limited auction in 2006. It took a further two years of negotiations before the transaction closed in January 2008, with Apax Europe VII Fund and co-investor Mivtach Shamir taking a 77% stake. The enterprise valuation was $1.4 billion.

Bright Food tried and failed to land a string of overseas assets, including Yoplait, before acquiring a 75% interest in Australia's Manassen Foods from CHAMP Private Equity in 2011. Bright Food subsequently bought a 60% stake in UK-based cereal company Weetabix from Lion Capital.

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• Topics
• Exits
• MENA
• Greater China
• Consumer
• MENA
• Consumer
• China
• Exit
• Trade sale
• Apax Partners