Chinese snack food SOE makes Australian acquisition

China state-owned enterprise (SOE) Bright Food Group (Bright Food) has acquired a 75% stake in privately-owned Australia-based confectionery Manassen Foods. Bright Food acquired the stake from Champ private equity for a total consideration of over US$516 million. The acquirer required offshore financing, and received a facility of US$315 million.

The transaction is subject to regulatory approvals by Chinese and Australian authorities. It is expected to close by the end of this year.

The target's global brands include Albatros bread, Harringtons chocolate, Jelly Belly sweets and Walkers shortbread biscuits. Once the transaction is completed, Bright Food will have further expanded its overseas food businesses across the region, and Manassen Foods will be able to utilise Bright Food's Asian distribution network to grow in Australia.

A Shanghai-based Latham & Watkins team led by Rowland Cheng and Karen Yan advised Bright Food, while Blake Dawson served as the SOE's Australian counsel. Representing the seller was Baker & McKenzie, and Allens Arthur Robinson acted for the banks.