Chinese orange grower Asian Citrus Holdings Ltd. said it is buying nearly all of a Guangxi-based maker of tropical fruit juice concentrates for HK$2.04 billion (US$261.5 million), in its first foray into the juice concentrate business.
The orange grower said it will buy 92.94% of Beihai Perfuming Garden Juice Co., or Beihai BPG, from BPG Food & Beverages Holdings Ltd., a Cayman Islands-incorporated company.
BPG is the largest supplier of tropical fruit juice concentrates in China, according to Shanghai-based Lunar Capital.
"BPG's revenue and earnings have more than doubled between 2007 and 2010. The company is well positioned for growing Chinese domestic consumer demand and growth in the emerging Central and Western regions of China," said Derek Sulger, a partner at Lunar Capital.
Lunar Capital and other private equity co-investors own about 24% of BPG, while the founders and management of of the juice concentrates supplier own the rest.
Asian Citrus, which sells oranges to wholesalers and supermarket chains from two plantations in China and is developing a third, said Beihai BPG processes more than 10 types of tropical fruits, such as pineapples, passion fruit, lynches, and mangoes.