H.J. Heinz Co., the ketchup maker which agreed to be acquired in a $23 billion buyout this month, will sell its China packaged food business to Zhengzhou Sanquan Foods Co.
February 25/Pittsburgh/Bloomberg -- H.J. Heinz Co., the ketchup maker which agreed to be acquired in a $23 billion buyout this month, will sell its China packaged food business to Zhengzhou Sanquan Foods Co. Zhengzhou Sanquan signed a deal with H.J. Heinz’s subsidiaries, Country Ford Development Ltd. and Heinz (China) Investment Co., to buy Shanghai Long Fong Co. on Feb. 22, Henan- based Zhengzhou Sanquan said in a statement to the Shenzhen stock exchange dated Feb. 23.
Zhengzhou Sanquan rose to its highest in 11 months in Shenzhen trading. The company, which sells frozen meals and snacks such as fried chive dumplings on the mainland, said the purchase will help increase competitiveness and expand market share. The acquisition will be financed using internal cash, it said, without giving a value for the deal.