Nissin Foods Co. is targeting what it says is demand in Australia for Asian cuisine with a deal to buy local business ABC Pastry.
Based in Sydney, ABC Pastry makes frozen dumplings, selling into supermarket chains and Asian grocers in Australia.
Nissin Foods Co., the Hong Kong-listed arm of Japan’s Nissin Foods Holdings, has agreed to pay A$33.7m ($23.3m) for ABC Pastry.
In a stock-exchange filing, Nissin Foods Co., which exports to Australia, said the acquisition is “a premium opportunity for the group to tap into the Australian frozen food market”.
Without citing data, the company said Australia’s frozen-food sector is expected to see “robust growth”.
It added: “Frozen dumplings, in particular, have been benefiting from the rising Asian migration to Australia. There is a growing demand for convenient, high-quality frozen foods, driven by busy lifestyles and a desire for international cuisine such as Asian.
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“This trend is anticipated to continue and there will be ample opportunities for expansion of the premium frozen food market in Australia.”
Set up in 1998, ABC Pastry is co-owned by the Gaoyang family and Min Investments.
In the year to the end of June, the company generated revenue of A$15.2m and a net profit after tax of A$2.8m, Nissin Foods Co. said.
Earlier this year, Nissin Foods Co. announced plans to purchase the South Korean baked grain crispy rolls maker Gaemi Food.
In 2023, Nissin Foods Co.’s revenue fell 5.3% to HK$3.83bn ($492.8m) amid weaker consumer demand for instant noodles.
Profit attributable to owners of the company rose 5.6% to HK$330.2m.
