The Hershey Company will acquire 80% of the iconic Shanghai Golden Monkey Food Joint Stock Co.
December 19/Hershey, Pa./Business Wire -- The Hershey Company announced that its wholly owned subsidiary, Hershey Netherlands B.V., has signed an agreement to acquire 80% of the iconic Shanghai Golden Monkey Food Joint Stock Co. Ltd. (SGM), a privately held confectionery company based in Shanghai, China. Completion of the agreement is expected to occur in the second quarter of 2014 and is subject to China regulatory and SGM shareholder approval.
Hershey has increased its investment in China over the past several years and is one of the fastest growing confection companies in China. With this transaction, Hershey intends to build on the success of SGM’s iconic brands, diverse product portfolio, in-country manufacturing and growing sales force to accelerate its growth in China, enhance its ability to serve Chinese consumers, and provide increased opportunities for employees in the country. At the same time, SGM will benefit from the scale and scope of Hershey to enable the sustainable, long-term development of SGM’s trusted brands.