29.10.2021 – 22:14
Yili Group (China)
On October 27th, Inner Mongolia Yili Industrial Group Co., Ltd. (“Yili Group” or “Yili”), Asia’s largest dairy producer, announced that it had a stake in goat milk food giant Ausnutria Dairy Co. Ltd. (“Ausnutria Dairy” or “Ausnutria”) and has become its largest shareholder. This was the largest M&A deal in the Chinese dairy industry in recent years.
Following the announcement by the Yili Group, the company will be managed through its wholly-owned subsidiary Hong Kong Jingang Trade Holding Co., Ltd. work with Ausnutria Dairy. (“Jingang”) to partner with Ausnutria Dairy to advance its infant formula and nutritional products activities.
Jingang will purchase a total of 531 million shares from existing shareholders at a price of Hong Kong $ 10.06 per share, which is approximately 30.89% of the total number of Ausnutria shares outstanding. In addition, Ausnutria will issue 90 million new shares in Jingang at a price of Hong Kong $ 10.06 per share. If the above two transactions are successfully completed, Jingang will hold a total of 621 million shares in Ausnutria, representing 34.33% of the company’s total issued shares, making Yili the company’s largest single shareholder.
Dairy giant teams up with leading manufacturer of goat milk food and forges a strong new alliance
Pan Gang, chairman of Yili Group, said the two companies have a lot in common and Yili recognizes Ausnutria’s values, strategic direction and core team. In the coming years, Yili will fully exploit its strengths in terms of company size, branding, distribution channels and industrial chain to enable Ausnutria to develop solidly in the long term.
Yan Weibin, chairman of Ausnutria, said that a strategic investor like Yili will not only create synergies in the industrial chain but also empower Ausnutria in terms of management and strategic planning.
The partnership will strengthen Yili’s leadership position in milk nutrition and facilitate the company’s entry into the nutritional products market.
High growth rate, high value infant formula is a category that Yili will focus on and realize its full potential in the future. In August 2021, Yili’s Jinlingguan series took the lead among all brands of its kind in terms of the growth rate of all channels in the Chinese market. Yili is also gaining a growing share of the goat milk infant formula market. The newly launched Jinlingguan UITSTEKEND GEITENMELK was characterized by its premium quality and recorded a jump in sales of up to 200%.
As one of the market leaders in infant formula, Ausnutria has seized the goat milk market opportunity. Kabrita, a goat milk formula brand launched by Ausnutria, has become a flagship product in the Chinese infant formula market. Ausnutria has taken first place in total goat milk food sales worldwide.
When the transaction between the two parties is completed, Ausnutria’s long-term development will be greatly enhanced, which in turn will accelerate Yili’s efforts to fulfill its strategic dairy nutrition layout. Starting with baby food, the two companies will complement each other in the areas of material procurement, marketing models, location advantages and research and development.
Ausnutria has also built a full line of nutritional products such as nutritional supplements, probiotics and foods for special medical purposes, and is emerging as a provider of high quality nutritional products and health services for all ages and life cycles. At this point in time, the integration of optimal resources from both sides will also facilitate Yili’s entry into the nutritional products market.
Original content by: Yili Group (China), transmitted by news aktuell