Nestlé To Acquire Majority Stake In Chinese Confectionery Company

Nestlé announced it is acquiring a 60 percent stake in Chinese candy and snack maker Hsu Fu Chi. Under the agreement, the founding family of Hsu Fu Chi will retain a 40 percent interest in the company and Hsu Chen will remain CEO. Nestlé said it is paying approximately CHF 1.4 billion ($1.7 billion) to acquire the stake in Hsu Fu Chi. Hsu Fu Chi’s product lines include sugar confectionery, cereal-based snacks, packaged cakes and the traditional Chinese snack sachima. In 2010, Hsu Fu Chi reported sales of CHF 669 million and an EBIT margin of 17.3percent. The completion of the transaction is subject to regulatory approval in China.