Heinz Buys Chinese Maker of Soy Sauce
June 21, 2010
The Associated Press reports H.J. Heinz Co. has agreed to buy Foodstar, a Chinese food company that makes soy sauces and fermented bean curd, for $165 million. The deal would give the U.S. ketchup maker a bigger foothold in China, boosting sales in that region by $300 million a year. It would also give the Pittsburgh company its first stake in fast-growing China''s $2 billion soy sauce market. The acquisition from the private equity firm Transpac Industrial Holdings Ltd. also includes a possible extra payout in 2014 if Foodstar has strong performance as a Heinz brand. Foodstar has about 2,500 employees in China and four manufacturing sites. The deal still requires regulatory approval in China.