China Haisheng Juice Holdings has announced it will acquire the China-based juice business of Japan's Itochu Corporation, the Yitian Group, which includes Yitian Shaanxi, Laiyang Yitian and Laiyang Dalian. The acquisition price is estimated at HKD 80.6 million (about $10.38 million).
Itochu will also become a strategic shareholder of China Haisheng, improving market access to Japan for China Haisheng. In addition, under an exclusive distributorship agreement, Itochu will market, sell and distribute China Haisheng’s fruit juice products in Japan.
The acquisition is expected to increase China Haisheng’s production capacity by 15%. Together with Yitian Group’s 30% market share in Japan for apple juice concentrate, the acquisition is also expected to expand China Haisheng’s market share in Japan from 8% to 40%.
Mr. Gao Liang, founder and Chairman of China Haisheng, said: "The acquisition is a significant development for China Haisheng in view of the recovery of the global apple juice concentrate industry. It will help China Haisheng expand production capacity in China, as well as expand the Group’s share of the Japan market for apple juice concentrate".
"Meanwhile, we welcome Itochu into the Group as a strategic shareholder. The acquisition and new relationship with Itochu together will help us build an impregnable position in the world’s second largest consumer market after the United States", added the Chairman.