Bright Food in talks to acquire Israeli food firm Tnuva

Bright Food, the Chinese state-controlled dairy and consumer products manufacturer, is in preliminary talks to acquire Israeli food producer and distributor Tnuva, as it seeks to further diversify its international footprint.

Tnuva is majority owned by UK private equity firm Apax Partners, 20.7% by Israel-based private equity firm Mivtach Shamir and the remaining 23.3% by agricultural communities.

The dairy-focused agricultural cooperative, which owns ten food brands in Israel, markets milk and dairy products, eggs, fish, chicken and frozen vegetables, and holds about 14% of shelf space in local supermarkets.

In 2008 Apax Partners and Mivtach Shamir acquired control of Tnuva, in a deal that valued the company at $989m.

If the latest talks are successful, the potential deal could be worth approximately CNY10bn ($1.63bn), reported Reuters, citing a Chinese newspaper.

Bright Food spokesman Pan Jianjun was quoted by Reuters as saying: "This has really just got going and the two sides are in the process of talking and understanding one another."

In recent years Bright Food’s overseas acquisitions have involved several leading foreign food brands – in 2012, the company acquired a majority 60% stake in UK-based cereal maker Weetabix Food for £1.2bn and a 70% share in French wine merchant Diva.

In 2011, Bright Food acquired a 75% stake in Australia’s Manassen Foods and in 2010 it bought New Zealand’s Synlait Milk.

Bright Food expects its international sales to account for 25% of revenues by 2015, up from 15% as announced earlier.

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

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Image: If talks are successful, the potential deal could be worth approximately $1.63bn. Photo courtesy of Stephanie Berghaeuser.