Qiaqia Food, one of China’s largest producers of roasted seeds and nuts, plans to partner with Shanghai-listed Chinese casual halogenated food producer Juewei Food Co Ltd to set up an investment fund focused on the food and beverage industry, per a filing.
Both parties inked an agreement with a slew of other investors like Linzhi Yongchuang Information Technology and Zhejiang Jiyuan Network Technology to invest a total of 1.1 billion yuan ($170 million) in the fund.
The fund is dubbed Sichuan Chengdu Xinjin Siyiwu Investment.
Juewei Food is poised to invest 644 million yuan ($100 million) in the fund through its subsidiary Wangju Capital, while Qiaqia Food targets to put in 60 million yuan ($9 million).
Following the transaction, Wangju Capital will be the largest limited partner in the fund holding 58.55% equity interest while Qiaqia will own 5.45%.
The fund will back companies in segments such as halogenated foods, restaurant chains, snacks, condiments, pet food and supply chain.
Qiaqia, set up in 2001, produces snack foods including sunflower seeds, walnuts, potato chips, fried foods, pickled foods, biscuits, among others. Its investors include CITIC Securities, China Construction Bank, Orient Securities, Wens and Harvest Capital.
The company was listed in Shenzhen in 2011, and its shares opened at a price of 23.35 yuan ($3.61) on Friday.
The 16-year-old Juewei Food sells spiced and stewed food through retail stores and franchises across China. As of April 29, its market valuation is at 52 billion ($8.2 billion).