Fully integrated fresh fruit supplier Sun Moon Food has moved to acquire a 51 per cent stake in fruit retailer Harvest Season at a cost of US$2.32m, according to Deal Street Asia.
Harvest Season operates six stores in Zhenjiang and Nanjing, cities within China’s Jiangsu province. Jiangsu, which shares its provincial boarder with Shanghai, is home to more than 100m consumers and is widely considered to be one of China’s fastest growing middle class regions. Harvest Season also operates complementary online and store-based delivery services, spreading its reach further into Jiangsu.
“The fresh, stylish and upbeat concept for its stores which sell a combination of imported and domestic fruits, juices and convenience foods attracts all age groups,” according to a statement on Sun Moon’s website.
SunMoon has proposed to buy 510,000 ordinary shares in Harvest Season as part of the deal, which the company sees as an opportunity to increase its footprint in the People’s Republic.
“The company believes that it can tap on and benefit from this growing consumption in China of fruit staples through retail and online delivery channels by acquiring a controlling stake in Harvest Season, which will, by completion, have a cash and NTA (net tangible assets) position of at least S$3m (US$2.25m) earmarked for working capital and the development of more stores in China.”
