Kerry Group plc, the global taste & nutrition company, has recently acquired 100% stake in Shanghai Greatang Orchard Food Co., Ltd. (Greatang).
Greatang is headquartered in Shanghai and is the leading producer of local authentic and innovative taste solutions for local foodservice chains, and the meals and snacks markets. This acquisition strongly complements Kerry’s leading authentic taste position in China, broadening and deepening its capability and portfolio of local taste solutions in the region.
Most notably, the acquisition will strengthen Kerry’s presence in the rapidly growing foodservice hotpot market in China. Greatang’s expertise strengthens and expands Kerry’s strategic positioning and capability as an innovation partner for local and international customers in China. Greatang is expected to record a revenue of Rmb 300 million (US$41.2 million) in 2023.
The initial consideration for the acquisition is Rmb 720 million (US$98.8 million), with potential additional payments of up to Rmb 780 million (US$107 million) payable across the next 3 years if certain performance conditions are met across each of these years.
The acquisition also helps to expand Kerry’s China customer base by providing deeper access to the country’s large regional markets via existing and established distribution and foodservice channels. It also has enhanced Kerry’s savory flavor manufacturing capabilities in the Asia Pacific market and enabled the company to offer a full suite of savory offerings in the region, alongside its existing comprehensive sweet and beverage flavor portfolios.