Bright Food Group Co., the dairy and consumer-products group backed by the Shanghai government, has agreed to buy a majority stake in Israel’s Tnuva Food Industries Ltd.
Bright Food will acquire 56 percent of Tnuva at a price that has yet to be decided, Pan Jianjun, a spokesman for the Chinese company, said in a mobile-phone message today.
Companies in China, from Bright Food to pork producer WH Group Ltd. have been making acquisitions overseas as rising incomes spur demand for consumer goods. Bright Food, whose domestic brands include White Rabbit candy, bought a 60 percent stake in British cereal maker Weetabix Ltd. in 2012.
Tnuva owns seven of the 10 best known food brands in Israel and accounts for more than 14 percent of shelf space in the country’s supermarkets, according to the website of private-equity firm Apax Partners LLP, which invested in the company.
Tnuva was formed more than 80 years ago as an agricultural cooperative of 620 farming communities across the country, who were also the company’s suppliers of raw milk and produce, according to Apax. Members of the co-operative approved the sale of a majority stake in Tnuva to Apax in 2007 at a price that valued the company at $1.03 billion at the time.
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