Bright Food Group Co., a Chinese dairy and consumer-products group, has agreed to buy a majority stake in Israel’s Tnuva Food Industries Ltd., Bloomberg reports.
The group, backed by the Shanghai government, has plans to expand overseas and it is said the deal would give Bright Food a broader range of high-quality products to bring into China to tap local demand.
According to company spokesman Pan Jianjun, Bright Food has reached a preliminary agreement with Apax Partners LLP, a private-equity firm that has invested in Tnuva, to acquire 56% of the Israeli company. While Jianjun stated that a final price had yet to be agreed, reports are that the deal would be in the order of $960 million.
Bright Food has stepped up its acquisition of foreign companies in recent times, most notably buying a 60% stake in British cereal manufacturer Weetabix in 2012.