The WhiteWave Foods Company has entered into a joint venture agreement with China Mengniu Dairy Company Limited.
January 6/Denver/Press Release -- The WhiteWave Foods Company has entered into a joint venture agreement with China Mengniu Dairy Company Limited, a leading Chinese dairy company. The joint venture intends to manufacture, market and sell a range of nutritious products in China. The joint venture has also executed an agreement to purchase Yashili Zhengzhou, a subsidiary of Yashili International Holdings Ltd. Zhengzhou’s primary asset is a production facility currently under construction in China, where the joint venture intends to manufacture its products. Mengniu is the majority owner of Yashili.
Under the terms of the agreement, WhiteWave will own a 49% stake in the venture and Mengniu will own a 51% stake. The purchase price for Zhengzhou is expected to be approximately $85 million, including approximately $62 million for the purchase of equity and the balance for the repayment and assumption of debt and other obligations. Each joint venture party’s share of the purchase price for Zhengzhou will be consistent with its ownership interest in the venture. The parties expect to make additional investments to support the start-up and commercialization of the joint venture.