Heinz announces USD60m earn-out payment for Foodstar business in China
Jan 24, 2013 (Menafn - M2 EQUITYBITES via COMTEX) --Convenience food company H.J. Heinz Company HNZ announced on Wednesday an early earn-out payment of USD60m to Transpac Industrial Holdings Ltd, a Singapore-based private equity holding company, and various Transpac Funds, the previous owners of Heinz's Foodstar business in China.
Heinz had acquired Foodstar in November 2010. This earn-out payment is reportedly in addition to the original purchase price of USD165m.
According to the company, this payment, which is 20% higher than the original provision, is based on the outstanding financial performance of Foodstar in China and was accelerated from July 2014 based on the parties' decision that the objectives of the earn-out arrangement have now been achieved.
Heinz is expected to record this payment as a special item of USD0.04 of earnings per share (EPS) in the fiscal third quarter, which ends on 27 January 2013.
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