Angel Yeast acquires Bio Sunkeen’s yeast relevant assets in US$15.4M deal

26 Aug 2021 --- Angel Yeast Co. has established a joint venture (JV) company to invest RMB 100 million (US$15.4 million) to acquire yeast relevant assets of Shandong Bio Sunkeen Co. As part of the move, Angel Yeast will optimize its production capacity and further consolidate and strengthen its position.

The China-based yeast giant has partnered with Shandong Lufa Holding company to establish Angel Yeast (Jining) Co., Ltd. Angel Yeast (Jining) and Bio Sunkeen’s yeast product production, while simultaneously transforming and upgrading its technological capabilities.

“Angel Yeast will utilize Bio Sunkeen’s existing facilities, with further expansion plans in the future. This JV project is in line with Angel Yeast’s 2025 strategy focusing on yeast biotechnology, nutrition and health products, and food ingredients,” says Chen Hongwei, general manager of Angel Yeast (Jining).

Yeast ingredients rise
Bio Sunkeen currently has an annual capacity of 15,000 metric tons of yeast and yeast extract (YE) through its production facilities. Its main products include yeast and YE, edible sweet potato starch, feeding products, compound seasoning and other yeast augmented products.

The acquisition will assist in consolidating the yeast industry and enhancing China’s position on the global stage.Angel Yeast will acquire Bio Sunkeen’s yeast extract-related assets group to implement technological transformation and upgrade its processes and facilities. Eventually, the company aimst to build it into a substantial production base for its yeast products and related raw materials for food, organic feed and fertilizer.

Angel Yeast’s acquisition of Bio Sunkeen will help the company rapidly address potential capacity gaps as the market grows.

According to analysis and predictions of the 2021 to 2025 period, there will be an increasingly prominent gap between the growth rate of the yeast market and the available supply based on the group’s annual production capacity.

Increasing production capacity
By acquiring Bio Sunkeen’s biological products, Angel Yeast can rapidly increase its production capacity and reduce its construction period by nearly two years while increasing the ratio of input to output compared to building a new factory.

At the same time, the acquisition will assist in consolidating the yeast industry and enhancing China’s position on the global stage. Angel Yeast’s acquisition of Bio Sunkeen’s assets will strengthen its position in the industry as it reduces market competition by converting competitors into partners, notes the company.

Together with the capabilities of Bio Sunkeen, Angel Yeast (Jining) will also be able to expand its channels for the production of yeast from hydrolyzed corn glycogen to leverage the abundance of local corn resources fully and address the industry’s molasses shortage.

Angel Yeast has contributed RMB 60 million (US$9.2 million) to the acquisition costs, and Shandong Lufa has contributed RMB 40 million (US$6.2 million).

After the acquisition goes into effect, Angel Yeast has guaranteed employment in principle for all of Bio Sunkeen’s current on-the-job employees related to the operation of its underlying assets.

Earlier this month, Angel Yeast reported strong revenue growth for H1, boosted by Bakery and Savory segments.

Angel Yeast’s business unit Nutritech is also innovating, as wellness ingredients saw increased demand during COVID-19. It is currently using its fermentation expertise to enhance the bioavailability of health ingredients, such as ginseng powder.

Edited by Elizabeth Green

To contact our editorial team please email us at editorial@cnsmedia.com