On June 2, PepsiCo announced that it had acquired a transaction to acquire Hangzhou Holmes Food Co., Ltd. (“Bai Cao Wei”) for US$705 million. The Chinese regulatory agency approved and completed the delivery. After the transaction is completed, Baicao will become an independently operated business unit of PepsiCo in the Asia-Pacific region, maintaining an independent brand and independent operation. The original executive team and operating model of Baicao will remain unchanged.
For this transaction, Ke Ruinan, CEO of PepsiCo Asia Pacific, said that holding hands with Baicao is one of PepsiCo’s strategies of “rooting China, serving China, and joining hands with China” Important milestones. With the completion of the acquisition of Paraquat, PepsiCo has invested more than 53 billion yuan in China over the past 10 years. China is one of PepsiCo’s most important global markets.
Baicao was once the business of “The First Share of Jujube Industry” Good Hope You Healthy Food Co., Ltd. (abbreviation: Good Miss You, 002582.SZ). As early as February 23 this year, I miss you announcing that you will sell Hangzhou Herbs Food Co., Ltd., the company’s parent company, to Pepsi for $705 million (equivalent to RMB 4.95 billion).
Baicao Wei was founded in 2003 and is headquartered in Hangzhou, Zhejiang. It is one of the leading online casual snack companies in China, covering roasted nuts, dried fruits, dried meat, dried meat, Snacks and other snacks series, mainly online sales channels.
In 2016, I missed you’s acquisition of Hangzhou Holmes Food Co., Ltd. for 960 million yuan and completed the “First Case of Domestic Snack E-Commerce M&A”. Soon it becomes the pillar of your business income. According to the yearnings of your year-end report for 2019, Baicao’s operating income last year exceeded 50% of the annual operating income of the yearning listed company.
Judging from Pepsi’s acquisition price of US$705 million (approximately RMB 4.95 billion), the valuation of Baicao has been overwhelming for 4 years under your banner More than 5 times. In other words, Pepsi’s $705 million acquisition price makes you miss nearly 4 billion yuan.
According to PepsiCo’s statement, the acquisition’s success has helped Pepsi and Baicao complement each other in manufacturing, sales, and brand innovation.
PepsiCo said in a press release that in terms of manufacturing, Baicao has a highly flexible and asset-light supply chainModel, PepsiCo has the advantages of agriculture, manufacturing and global procurement. The two parties will work together with partners to provide more stable, efficient and optimized procurement and manufacturing solutions; in terms of sales, the core advantage of Baicao is online PepsiCo has a mature online and offline distribution network, and its customer management capabilities are also well-known in the industry. Both parties will be able to create a truly omni-channel entity that can provide real-time services to consumers. Wei has over 70 million members and PepsiCo has 23 global brands with a retail value of more than US$1 billion.