FDBusiness.com

Baring Private Equity Asia has acquired a 40% stake in Weetabix Food Company, the UK-based manufacturer of cereals and cereal bars. Baring Private Equity Asia will work in partnership with Bright Food, the controlling shareholder of Weetabix, to drive expansion in China. Bright Food is one of the largest state-owned food manufacturing companies in China. The terms of the transaction were not disclosed.

Weetabix is the largest breakfast cereal brand in the United Kingdom with a global footprint spanning Asia, Europe, the Middle East, North America and Africa. Its family of brands includes Weetabix, Alpen, Ready-brek, Weetos, Oatibix and Alpen cereal bars. Weetabix products are exported to 87 countries in Asia (including China), Europe and the Middle East.

Baring Private Equity Asia is one of the largest and most established independent private equity firms in Asia and advises funds that manage more than US$9 billion in committed capital. The firm has been investing in Asia since its formation in 1997 and has seven offices in Hong Kong, Shanghai, Beijing, Mumbai, Singapore, Jakarta and Tokyo.

Giles Turrell, chief executive of Weetabix.

Jean Eric Salata, founder and chief executive of Baring Asia, comments: “Weetabix is an established and profitable brand in the UK, and is well positioned to take advantage of the strong consumer demand in China for high-quality and nutritious food products. We look forward to partnering with Bright Food, one of the largest food and beverage manufacturing companies in China and itsvast nationwide distribution network, to expand Weetabix in China.”

Yongjie Lv, chairman of Bright Food Group, says: “We look forward to taking our investment in Weetabix to its next stage with a focus on introducing the brand to China where high quality products and proven brands are of paramount importance to consumers. We are delighted to be working with Baring Asia to execute on this strategy, benefitting from their sector experience in food and beverage, strong credentials in helping companies execute cross-border growth strategies, pan-Asia network and hands-on operational experience.”

Giles Turrell, chief executive of Weetabix, comments: “We are an established leader in the UK breakfast cereal market with an aim to become a globally recognised brand. With continued backing from Bright Food and this investment from Baring Asia, we now have an even greater opportunity to strengthen and expand the Weetabix brand internationally.”