Heinz To Expand Its Global Condiments & Sauces Business
Acquires Leading Culinary Sauce Brands, HP and Lea & Perrins, and License for Amoy Asian Sauces in Europe; Heinz to Become U.K.'s Leading Sauce Company
H.J. Heinz Company today announced that it has signed a definitive agreement with Groupe Danone S.A. to acquire a number of leading culinary sauce brands for GBP 470 million (approximately US$855 million) in cash. The transaction includes the HP and Lea & Perrins brands and a perpetual license to market Amoy Asian sauces and products in Europe. These brands, marketed primarily in the U.K., United States and Canada, have approximately $300 million in worldwide annual sales. This acquisition will strengthen Heinz's global condiments & sauces business and make it the sauces leader in the U.K.
Heinz Chairman, President and Chief Executive Officer William R. Johnson said: "The acquisition of these brands is consistent with our strategy to drive growth in our profitable and expanding core condiments and sauces category. We will add two of the world's best-known sauce names, HP and Lea & Perrins, to our global basket of iconic condiments & sauce brands, such as Heinz, ABC, Classico and Wattie's. Heinz also will gain a perpetual license to sell the rapidly growing Amoy brand of Asian sauces throughout Europe."
"This acquisition underscores our commitment to become a faster-growing, more focused company. It also is in line with our strategy of growth in our four core businesses of ketchup, condiments & sauces; meals & snacks; infant nutrition; and foodservice. We have identified many opportunities to expand sales of the HP, Lea & Perrins and Amoy brands. Once concluded, we expect the acquisition to be accretive in the first full fiscal year," Mr. Johnson added.
The acquisition is expected to close during the next few months, pending all regulatory approvals.
Heinz was advised by UBS LLC and Clifford Chance LLP.
HP and Lea & Perrins Brands
The Lea & Perrins brand is the world's number-one Worcestershire Sauce and the market leader in the United States, Canada and the U.K. The HP brand of savory sauce is a leader in both Canada and the U.K.
Both brands are exported worldwide to more than 75 countries and sold through retail and foodservice channels alike. Along with Heinz Ketchup, HP and Lea & Perrins sauces sit proudly atop tables and counters in restaurants worldwide.
The HP name (which stands for Houses of Parliament) has long been Britain's number-one savory table sauce.
Lea & Perrins is truly an historic global brand. The famous Worcestershire Sauce has literally traversed the globe since 1837 when it was served on the tables of ocean liners that traveled in and out of British waters.
Today, the Lea & Perrins and HP brand sauces maintain their acclaim and are regularly featured as essential ingredients in contemporary recipes created by celebrity chefs and restaurateurs.
Amoy Sauce
The Amoy brand of Asian varieties is popular in more than 40 countries. The line, which was first created in China in 1908, continues to expand and includes ever-popular soy and stir-fry sauces and noodles.
SOURCE: H.J. Heinz Company