Bright Food acquires controlling stake in cereal company Weetabix

Chinese state-owned firm Bright Food has completed the acquisition of a 60% stake in British breakfast cereal company Weetabix from private equity firm Lion Capital in a £720m deal.

The remaining stake is held by Lion Capital and the Weetabix management.

The acquisition, which values Weetabix at £1.2bn including debt, is part of Bright Food’s plan to enter the UK and global food markets.

Bright Food chairman Wang Zongnan said that the company will boost investment in the Weetabix brands and product innovation, in order to accelerate its development in the international markets.

"In particular, Bright Food is committed to leveraging its resources and extensive experience across all aspects of the food industry to underpin Weetabix’s expansion in Asia, in particular China," Zongnan added.

Weetabix CEO Giles Turrell said the company plans to launch its brands in new markets and also develop additional products that are customised to the Chinese market.

With the completion of the acquisition, Bright Food is evaluating a proposal to list Weetabix on the Hong Kong stock exchange, in order to lower pressure from debt risks, reported the Securities Daily.

Weetabix, founded in 1932 and headquartered in Kettering, UK, was family owned until it was bought by US-based Lion Capital in 2004 for £642m.

The company is the second largest manufacturer of breakfast cereals and cereal bars in the UK after Kelloggs, holding a 7% share of the country’s total cereals market, with annual sales totalling £100m in the UK.

It exports to over 80 countries and owns brands such as Alpen, Ready Brek and Oatibix, with annual sales of more than £420m.

Bright Food is a multinational food and beverage company headquartered in Shanghai, China, and it is involved in agriculture, food processing, brand agency service and retail, among others.