Hong-Kong listed Nissin Foods Co. has announced plans to purchase the South Korean baked grain crispy rolls maker Gaemi Food.
Nissin Foods Co., a subsidiary of Japanese noodle manufacturer Nissin Foods Holdings Co., is looking to acquire the business for Won48bn ($34.9m).
Once the transaction is complete, Gaemi Food will sit under the Nissin Foods Co. umbrella of brands, which includes shelf-stable and frozen noodles brands Fuku, Demae Iccho and Nissin Donbei.
Gaemi Food's sweets, chocolate and chewy gum brand Kemy will also be included in the acquisition, "further enriching" the company's "non-noodles business", Nissin Foods Co. said in a statement.
The group's portfolio includes a range of baked crispy grain rolls, spiced popped corn snacks, and confectionery. It also produces a range of crispy fruit and vegetable-filled rolls for children and toddlers under the label Kemy Kids.
It also processes private-label foods and "original design manufacturer products".
Nissin Foods Co. said the purchase provides the opportunity to boost the product's "distribution capabilities in China and South East Asia to respond to the increasing market demand and the changing business environment".
It added it expects to see "ample opportunities for expansion of the baked grain crispy rolls market", due to the growing consumer interest in "convenient" foods.
Speaking further on the news, Kiyotaka Ando, executive director, chairman and CEO of Nissin Foods Co., said the move marked "a strategic milestone" for the company "in developing our business in the Korean and overseas markets”.
He added: "While leveraging Nissin Foods’ core competencies in marketing and food technology, the group is developing a non-noodle business that can create synergies with the instant noodle business.
"Most importantly, expanding into overseas markets not only diversifies our revenue sources, but also deepens our understanding of local cultures and consumer behaviours.”
As well as South Korea, Gaemi Food's main markets include China, Japan, Vietnam, Indonesia, Taiwan, Thailand, Australia and the US.
For the annual period ended December 31 December 2023, the Seoul-based group booked revenues of Won20.1m.
Nissin Foods Co.'s owner, Nissin Foods Holdings Co., produces a range of noodles products, such as the Soba and Nissin Premium Bag instant noodle brands for Japan, China, Asia, the Americas and Europe.
The holding company entered Hong Kong in 2018 via a joint venture with Japanese peer Kagome Co.
