Apple Flavor & Fragrance Group Co., Ltd. (603020.SH) has announced plans to establish a wholly-owned subsidiary, tentatively named Shanghai Apple Life Science Technology Co., Ltd. (Apple Life Tech). Through this subsidiary, the company intends to acquire 100% equity in NovoSana (Taicang) Biotechnology Co., Ltd. from NovoSana (Europe) B.V. for a total consideration of 450 million yuan in cash.
The transaction will be conducted in two phases. The initial phase involves acquiring 80% equity in the target company. The second phase, for the remaining 20% equity, will be initiated upon the fulfillment of specified performance commitments.
This acquisition represents a significant strategic move for the company to deepen its presence in the health and wellness industry, building upon its core business of flavors, fragrances, and food ingredients. It marks the company's entry into the high-growth functional nutrition ingredients sector, specifically the Omega-3 fish oil segment, enabling business diversification.
Post-acquisition, leveraging the target company's core technologies in fish oil, large-scale production capacity, well-established supply chain, and premium customer resources, the parties aim to achieve deep synergies in R&D, production, distribution channels, and customer networks. This is expected to support the company's expansion into the healthy food ingredients field and significantly enhance its competitive edge and brand influence in high-value downstream markets, including functional foods, nutritional supplements, maternal and infant nutrition, and pet nutrition. The move is designed to transform the company from a traditional food ingredients supplier into a globally competitive, comprehensive provider of flavor and nutrition solutions, thereby strengthening its core competitiveness, industry influence, operational stability, and risk resilience.
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