Investcorp, a Middle Eastern investment fund, is reportedly merging with the Chinese partners to expend up to $500 million acquiring manufacturing units and food companies in Asia. The investment fund is planning to connect with Chinas raising bourgeoisies and their increasing preference for imported foods.
Investcorp has clubbed with the state-run firm, Fung Investments and China Resources to introduce Asias first private equity fund focused on infusing in food, reported Reuters.
Yarra Valley Snack Foods, Australian food brand and Tyrells Crisps, Britain Food firm, which amount worth $28.2 billion are presently in the portfolio of Investcorp. The investment fund has determined China as a growing market for Western foods.
Similar to Investcorp, Soy sauce, which is created in Japan, is probably targeting for collaboration to buy and export to China, reported the cited media agency.
"We are investing in a defensive sector that will continue its momentum regardless of the macroeconomic trends. People might spend less on luxury brands or travel, but not on food consumption in a downturn," Ben-Gacem said in an interview with Reuters.
The deal was finalized lately in Hong Kong along with three parties writing an initial funding concord of $300 million.