It’s a bid to expand its brand into China.
SunMoon Food Company (SunMoon), through its subsidiary SunMoon Distribution & Trading (SMDT), has inked a deal with Zhang Jiang Quan for his 12% stake in Harvest Season SG worth about US$1.03m, or $1.43m.
According to the company’s announcement, SunMoon is pursuing the acquisition as it believes that it can tap on and benefit from the growing consumption in China of fruit staples in retail as well as online delivery channels by securing a stake in Harvest Season SG.
The deal is also aligned with SunMoon’s plans to expand its brand into China. The company asserts that the acquisition allows SunMoon the chance to batten its competitive advantage and position as a global player in the wholesale and retail business. Also, the deal gives SunMoon access to new contracts, customers and opportunity in China.
Further, SunMoon believes that the acquisition will boost the company’s core competency in its fruit trading, distribution network, and supplier base.
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