Swiss food giant Nestle SA Thursday officially finished the acquisition of a 60 percent stake in China's Yinlu Foods Group.
At a ceremony in the southeastern city of Xiamen, home to the headquarters of Yinlu, the two also announced they will jointly invest 2.5 billion yuan (394 million U.S. dollars) in Yinlu to expand current and build new production facilities nationwide.
Chen Qingyuan, chairman of Yinlu, said the company will seek the help of Nestle to make Yinlu an international brand and to expand into the international market.
Roland Decorvet, chairman and CEO of Nestle China, said Yinlu has a very good understanding of the tastes of Chinese consumers and the Chinese market and also has very extensive distribution and sales network, while Nestle has rich experience in fields like research and development and management.
The two declined to disclose the price of the acquisition.
Yinlu, known for its peanut milk and instant porridge products, reported a revenue of 5.4 billion yuan in 2010, up 52.5 percent from a year ago.