10 March 2020

BDA advises Sichuan Huiji Food on sale to Grass Green, New Hope Group

Sichuan Huiji Food divested controlling stake to Green Grass Group

an investment arm of

2020

BDA Partners is pleased to announce that its client, Sichuan Huiji Food Co Ltd (“Huiji”), has sold a controlling equity stake to Grass Green Group (“Grass Green”), an investment arm of New Hope Group, China’s largest privately-held agricultural conglomerate. Grass Green has also formed a strategic partnership with Huiji. Huiji is a leading branded, better-for-you snack company in China. Mr. Lu Jingang, Founder and Chairman of Huiji, will continue his leadership role in Huiji.

BDA Partners was the exclusive financial advisor to Huiji and its shareholders on the transaction.

Mr. Lu Jingang, Founder and Chairman of Huiji, commented: “New Hope Group is a leading conglomerate in China with a strong presence and premium market position in the agriculture and food industries. We’re delighted to partner with a market leader which will bring valuable expertise in supply chain management and channel expansion to us at this pivotal stage of our evolution. We believe our partnership will create significant synergies for both parties.”

Mr. Xi Gang, President of Grass Green, said: “Huiji is a leader in the snack food sector with high quality products and a professional management team. We’re excited to partner with Mr. Lu and his team to continue to upgrade the snack food industry, leveraging Huiji’s strong brand and product development capabilities.”

Mr. Anthony Siu, Managing Director of BDA Partners, Shanghai, said: “We’re proud to introduce a strong partner to Huiji to facilitate its next phase of growth. New Hope’s experience and resources will play an important role in Huiji’s goal to become a pre-eminent healthy food company in China. This transaction demonstrates BDA’s advisory capabilities in better-for-you snacks and in the Consumer sector generally, as well as our ability to provide win-win solutions for our clients.”

Deal team

About Sichuan Huiji Food Industry

Sichuan Huiji Food Industry is a Sichuan-style snack food manufacturer, based in Chengdu, Sichuan. Huiji offers soybean snacks, jelly tofu, classic dried tofu snacks, sunflower seeds, rice crackers, flavored nuts and noodles with sauce under brand names Huiji, Haobashi, and You Ni Yi Mian. In recent years, Huiji successfully transformed from a regional leader in Southwest China to a national brand, well-received by millennials and Generation Z. The healthy ingredients and methods used in its production are popular among increasingly health-conscious consumers. Huiji has enjoyed high-quality private equity backing.  www.huijifood.com

About Grass Green Group / New Hope Group

The New Hope Group is a Chinese conglomerate with US$23bn (RMB159bn) annual revenue and nearly 80,000 employees across 30 countries. New Hope is among the top 10 producers of poultry in the world and one of the world’s largest producers of animal feed, with 20 million tons of animal feed produced in 2019. Leveraging its resources and expertise, New Hope Group has constantly branched out into new industries and sectors, from feed production to agriculture technology, food processing, real estate & tourism, and financial investments. New Hope Group began its overseas operations in 1997 and set up its first overseas factory in Vietnam in 1999. The Group now has 40 factories in operation or under investment in the countries along the Belt & Road region. en.newhopegroup.com

Grass Green Group is a consumer-focused investment platform co-founded by Mr. Liu Yonghao, Chairman of New Hope Group, together with Mr. Xi Gang, and Mr. Wang Hang. Adhering to the concept of improving consumers’ overall health and well-being, the group is dedicated to integrating global premium resources across industries to drive the “better-for-you” trends and promote industrial upgrading. Grass Green Group focuses on early-to-mid-stage investments and buyouts in the dairy, health food, cold-chain logistics, pet products, nutritional supplements, and condiments sub-sectors. It operates 100 subsidiaries and prioritises long-term value creation through professional investment management. www.caogenzhiben.com

About BDA

BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul, and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.

BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese Government-owned bank with US$150bn of assets. www.bdapartners.com

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