China-based frozen food manufacturer Sanquan Foods has entered into an agreement to acquire Long Fong, a packaged frozen food business in China which is owned by American food company HJ Heinz, for an undisclosed amount.
The deal was signed with Heinz's subsidiaries - Country Ford Development and Heinz (China) Investment.
The acquisition, which will be funded through internal cash, is expected to be completed by June this year.
Sanquan Foods stated that the acquisition will boost its competitiveness for frozen foods and expand its presence in China.
Heinz Long Fong, which operates as a subsidiary of Heinz (China) Sauces & Condiments, offers products in the following categories: dumpling, rice ball, dim sum and hot-pot base.
Heinz was quoted by Bloomberg as saying that the sale is part of the company's strategy to lower its focus on non-core frozen food businesses outside the US.
The decision to seek a buyer for the Long Fong frozen foods business in China is not related to the agreement with Berkshire Hathaway and 3G Capital, it added.
On 14 February, HJ Heinz entered into an agreement with a consortium comprised of investment firms Berkshire Hathaway and 3G Capital to divest itself in a deal
worth $28bn.
HJ Heinz is a global company that produces and markets foods specialising in ketchup, sauces, meals, soups, snacks and infant nutrition.
Sanquan Foods is involved in the production, distribution and export of frozen food products made from wheat flour and rice in China, and its products include quick-frozen glutinous rice balls, boiled dumplings, rice dumplings, and flour pastries.
