PITTSBURGH (AP) — H.J. Heinz Co. says it has agreed to buy a Chinese food company that makes soy sauces and fermented bean curd for $165 million.
Monday's deal for Foodstar would give the U.S. ketchup maker a bigger foothold in China, boosting sales in that region by $300 million a year.
The acquisition from the private equity firm Transpac Industrial Holdings Ltd. also includes a possible extra payout in 2014 if Foodstar has strong performance as a Heinz brand.
Foodstar has about 2,500 employees in China and four manufacturing sites.
The deal still requires regulatory approval in China.
