Hsu Fu Chi

File:Logo - Hsu Fu Chi candy company.jpg

Hsu Fu Chi is a Chinese company, based in Dongguan, China, that manufactures various confectionaries, biscuits, chocolates, jellies, sachima, and snacks. The company is majority owned by Nestlé, and minority owned by the Hsu family.

History

1992-2000 "From The Beginning To The End Of A Millennium"

In 1992, Mekey Hsu Chen founded Hsu Fu Chi in The People's Republic of China. In 1994, the brand was trademarked in the PRC. In 1997, Transpac invested in the company, and introduced new strategies. That same year, the brand became the top-selling brand in all of China; they were so for ten years, however in 2008, they were relegated to the number 2 position, as Mars ascended to the first position. Hsu Fu Chi was the first company to invent, develop, and introduce the "Pick and Mix" format in China, in which consumers can pick various kinds of confectionaries out of tubs of various confectionaries; and instead of picking only one kind, one can pick as many as they wish.

2000-2011

In 2000, Hsu Fu Chi began to build a distribution network across China, and today has one of the strongest distribution networks in China, in it's field. In 2004, they created the world's first fully-automated sachima plant. They were listed on a stock exchange in Singapore in 2006; the SGX ST in 2006, amd were one of the first Chinese confectionary companies to be listed on a stock exchange, and the first to be listed on the SGX.

They opened their newest factory, one in Zhumadian, China; in 2010. Over five years, from 2007 to 2012, their profits grew 17%.

2011-present "The Nestlé Years"

On 4 July 2011, Hsu Fu Chi said it has engaged in preliminary discussions with Nestle for a possible deal that may or may not lead to an offer being made for the shares of the company. "We won't deny they are one of the companies that we've been in touch with, but they are not the only one," Hsu Fu Chi spokeswoman, Christine Sun, said by telephone, referring to Nestlé. Nestlé spokeswoman Nina Backes at the time declined to give further information on the talks. It was never made clear what other companies Hsu Fu achieve was in talks with.

On 11 July 2011, Nestlé, the largest food company in the world, payed $1.7 billion for a 60 percent stake in Hsu Fu Chi International. This acquisition will help it become closer to its target of 45% of sales from emerging markets in about 10 years. Nestlé paid about 3.3 times the sales figures of Hsu Fu Chi for the stake, more than the 2.4 times sales American Mondelēz International paid for English candy group Cadbury. Under their agreement, Nestle will buy 43.5 percent of Hsu Fu Chi's shares from independent shareholders at S$4.35, a premium of 8.7 percent over the July 1 closing price—trading the Dongguan-based company's shares were stopped on 1 July when the companies said they were in talks. If the scheme was approved by independent shareholders, Nestle would have then acquire a 16.5 percent stake from the Hsu family, which would leave them with 40 percent. The company would have then be delisted.

On 6 December 2011, almost four months after first purchasing it's stake in Hsu Fu Chi, the government of the People's Republic of China, and the government of The Cayman Islands (where Hsu Fu Chi was incorporated) accepted Nestlé's bid, and allowed Nestlé to proceed in it's acquisition.

Nestlé and Hsu Fu Chi, as allowed to, proceeded with the acquisition, and it was completed within several days. Currently, Nestlé owns 60% of Hsu Fu Chi, and the Hsu family currently owns 40%. Mekey Hsu Chen is still, at present the chairman and CEO.