According to the content disclosed on the official website, the sale of Yinlus assets includes all shares of five enterprises located in Fujian, Anhui, Hubei, Shandong and Sichuan. The sales volume of Yinlu brand in 2019 is 700 million Swiss francs, about 5 billion yuan. Both parties agreed not to disclose the financial terms of the deal.
Yinlu Babao porridge and Yinlu peanut milk were once the memory of a generation. What kind of history has Yinlu gone through, from domestic brands to foreign companies and now back to the founders hands?
In 2011, Nestle acquired 60% of Yinlus equity, but at that time, the two sides were still in a joint venture relationship, not a merger and acquisition. After that, Yinlu went through two equity acquisitions. In 2017, Nestle acquired an additional 20% equity from Yinlus joint venture partner; in 2018, Nestle acquired the remaining 20% equity to complete the control.
In fact, as early as the end of 2019, Nestle will sell silver egrets. In March 2020, the news was further confirmed when it was reported that nestle was working with JP Morgan to prepare for the sale of the heron and to find a buyer for about $1 billion. For the buyer, there have been many news from the market, such as Wahaha, China Resources beer, unified food, etc., but none of them has been confirmed.
In addition, we need to pay attention to the fact that this is the second time Nestle has stripped off its local brand in terms of the Chinese market. Nestle announced that China would cooperate with Tsingtao Brewery group in mainland China in August 28th, and Tsingtao Brewery group will buy Nestle Chinas water business. The deal includes local brands Dashan, Yunnan spring and Nestles three water business plants in Kunming, Shanghai and Tianjin.
The continuous sale is based on the brand slimming plan of Nestles current CEO Mark Schneider.
Looking back on the sales cases in the past two years, Nestle sold the US confectionery business to Ferrero with a transaction amount of US $2.8 billion in 2018; sold its skin health company with SFR 10.2 billion in 2019; sold the US ice cream business for us $4 billion; and then sold 60% of the meat product business Herta to Spanish food company Casa tarradellas. After taking office in 2017, Schneider publicly proposed to replace 10% of its existing business by the end of 2020. In fact, through business reshuffle, Nestle has broken the dilemma of continuous decline in net profit. Since 2014, Nestles net profit has decreased year by year, from 14.5 billion Swiss francs to 7.2 billion Swiss francs; in 2019, Nestles net profit increased by 24% to 12.6 billion Swiss francs. Source: surging news editor: Chen Hequn_ NB12679
Looking back on the sales cases in the past two years, Nestle sold the US confectionery business to Ferrero with a transaction amount of US $2.8 billion in 2018; sold its skin health company with SFR 10.2 billion in 2019; sold the US ice cream business for us $4 billion; and then sold 60% of the meat product business Herta to Spanish food company Casa tarradellas.