BROOMFIELD, CO
WhiteWave Foods is forming a joint venture with China Mengniu Dairy Company Limited, a leading Chinese dairy company, to manufacture, market, and sell a range of nutritious products in China. WhiteWave has agreed to own 49% stake in the venture, while Mengniu will own the rest, according to a press release.
Gregg Engles, Chairman and CEO of WhiteWave, said, “Mengniu is the ideal partner for WhiteWave as it is a leading dairy company in China with a broad product portfolio, strong sales network and manufacturing capabilities, deep consumer expertise, and a wide distribution network throughout China. Through the joint venture, WhiteWave will be extremely well positioned to expand its business to this important geography.”
The joint venture will begin with the $85 million purchase of Yashili Zhengzhou, a subsidiary of Yashili International Holdings Ltd. This includes approximately $62 million for the purchase of equity and the balance for the repayment and assumption of debt and other obligations. Zhengzhou’s primary asset is a production facility currently under construction in China, where the joint venture intends to manufacture its products. Mengniu is the majority owner of Yashili International Holdings.
The Chinese government is expected to approve the joint venture sometime within the first half of 2014.
