HONG KONG: Huiyuan Juice Group to buy fruit juice supplier

By | 24 May 2013

The deal includes China Huiyuan Industry Holdings debt

The deal includes China Huiyuan Industry Holding's debt

China Huiyuan Juice Group is to buy a fruit and vegetable juice concentrate and puree maker from a major shareholder for HKD4.939bn (US$636m).

The deal for China Huiyuan Industry Holding includes HKD1.521bn in debt, according to a filing on the Hong Kong stock exchange yesterday (23 May). The Beijing company is currently owned by China Hui Yuan Holdings, which holds a 41.9% stake in Huiyuan Juice.

According to the filing, China Huiyuan Industry Holding produces 380,000 tonnes of fruit juice concentrates and purees every year and is one of the major suppliers of raw materials for Huiyuan Juice.

The takeover will allow Huiyuan Juice to further tap into China’s fruit and vegetable juice beverage market, which has continued to grow over the past few years on the back of rising demand for natural and healthy products, the filing said.

Last year, Huiyuan Juice, which claims its juice and nectars have a 54% market share in China by sales volumes, said it was moving into the wine sector.

Expert analysis

Juices in China

Juices in China industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including key financial metrics and analysis of competitive pressures within the market. Essential resource for top-line data and analysis covering the China juices market. Includes market size data, textual and graphical analysis of market growth trends, leading companies and macroeconomic information.

Sectors: Emerging markets – BRIC, Mergers & acquisitions, Soft drinks

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