Nestle completes acquisition of Chinese confectionery maker
Food giant Nestle announced on Monday it has reached a deal to take over the remaining 40 percent stake in confectionery maker Hsu Fu Chi from members of the Hsu family.
The Swiss company said it is expected to further leverage Hsu Fu Chi's strong distribution network to enhance its presence in China's snack and confectionery sector, without revealing the size of the deal.
Nestle bought a 60 percent stake in the confectionery maker Hsu Fu Chi International in 2011 for US$1.7 billion and since then has been expanding its snack and sweet portfolio for local consumers.
Hsu Fu Chi International was originally founded in 1992 by the Hsu family from China's Taiwan.
Originally founded in 1992 by the Hsu family from China's Taiwan, the Chinese company has a production base in Dongguan, southern Guangdong province.
Chief Executive Officer of Nestle China Zhang Xiqiang said the acquisition will further speed up the growth of the Hsu Fu Chi brand and will also enhance Nestle's market performance in China.
This is also the latest showcase of Nestle's long-term commitment in China and will also strengthen the capabilities to develop both local and international brands in the market, he noted.
Confectionery sales make up 16.1 percent of Nestle's total 40.3-billion-yuan (US$5.53 billion) sales in China last year, as per latest figures.
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