* Heinz to pay $165 mln at deal closing
* Sees deal accelerating growth in China
* Shares flat
NEW YORK, June 21 HJ Heinz Co HNZ.N said on
Monday that it agreed to acquire Foodstar, a Chinese soy sauce
maker, from private equity firm Transpac Funds, as it seeks to
accelerate growth in emerging markets.
Heinz will pay $165 million at the closing of the deal and
an earn-out potentially payable in 2014 based on the
performance of the business.
Heinz already produces ABC, a brand of soy sauces in
Indonesia. The company has also been operating in China since
the 1980's, when it opened a factory in Guangzhou to produce
Heinz infant cereal.
The acquisition would increase Heinz's annual sales in
China to about $300 million and enable the company to enter
China's fast-growing soy sauce market, worth about $2 billion
Heinz shares were flat at at $46.25
(Reporting by Martinne Geller, editing by Dave Zimmerman)