Nestle acquires majority stake in Henniez
Nestle acquires majority stake in Henniez
Nestle, the parent company of Nestle (India) acquired 61.66% stake in Swiss water firm Henniez for estimated Swiss Francs-(CHF) 155 million.
An agreement has been entered into between Nestle and Rouge family, the majority stake holder in Henniez for CHF 3,000 a share. Nestle, the world`s largest food company intends to make a public offer for the rest of the shares for CHF 5,303 a share.
Henniez which had sales of CHF 152 million in 2006, employs over 270 people. The company is well known for the quality of its products and its management.
Nestle after the deal, will command approximately 25% Swiss market share. The Swiss market is above the European average and enjoys a growth rate of 1 to 2% per year.
Carlo Donati, CEO of Nestle Waters `Henniez perfectly strengthens our existing activities in Switzerland. It brings us modern industrial capacity adapted to evolving consumer needs, a strong distribution network, as well as prestigious local brands which ideally complement our existing portfolio of international brands.`
Shares of the company were last trading down Rs 1.30, or 0.10%, at Rs 1,293.00. The total volume of shares traded at the BSE was 2,208. (12.25 p.m ,Tuesday ).
