Nissin to Buy Midsize Frozen Food Maker Nicky

Tokyo, June 9 (Jiji Press)–Japan’s Nissin Food Products Co. said Monday it will acquire midsize frozen food maker Nicky Foods Co. for 1,789 million yen, in order to strengthen its frozen food business.

Nissin Food, a major noodle maker known for its “Cup Noodle” series, will buy all shares of Osaka-based Nicky Foods on July 1.

Nissin Food hopes to expand its product range by acquiring Nicky Foods, which has strength in business-use frozen Chinese food.

The acquisition will boost Nissin Food’s annual sales from the frozen food business to around 40 billion yen, which the company aims to expand to 50 billion yen by 2010.

In November last year, Nissin Food and Japan Tobacco Inc. agreed to jointly take over major frozen food producer Katokichi Co. But Nissin pulled out of the deal in February following a food- poisoning scandal involving Chinese-made dumplings imported by a JT unit.

Nicky Foods’ earnings have been deteriorating since pesticide traces were found in February in frozen foods made by a Chinese subsidiary.END

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