Private-equity firm Investcorp has recently invested into China-based noodle supplier Mo Xiaoxian.
Shanghai-based Mo Xiaoxian markets convenience meal products like ‘self-heated’ hotpot and rice dishes, as well as instant vermicelli and noodles. It employs around 200 workers and sells across China through more than 700 distributors. The business has presence in more than 46,000 retail outlets.
Investcorp CEO Hazem Ben-Gacem said, “We seek to invest in brands that benefit from the current shifts in consumption and with China’s growing middle class, we see attractive opportunities in the innovative instant food brand sector.” He added that Mo Xiaoxian is the right fit for the fund’s strategy as it continues to expand in Asia, and it looks forward to working closely with Mo Xiaoxian in realising its full potential.
The deal was made by funds managed by a joint venture set up by Investcorp, China Resources Capital Management – the private investment arm of China Resources Group – and Fung Strategic Holdings Ltd, part of the private investment arm of the families of Victor Fung and William Fung. The transaction was concluded through Investcorp’s Asia Food Growth Fund I, a private-equity fund set up to invest in a portfolio of ‘food-related’ companies in Asia. Mo Xiaoxian is the fund’s 4th investment. Earlier in 2021, Investcorp backed Heritage Foods, a supplier of condiment and sauce brands operating in China, Singapore, Malaysia and Japan. In November, Investcorp acquired a majority stake in Viz Branz, a Singapore food and beverage manufacturer, for an undisclosed sum.