China's Bright Food buys majority stake in Australia's Manassen Foods

China's Bright Food, owned by the Shanghai municipal government, has bought a majority stake in Australian branded foods company Manassen Foods, as it aims to boost sales overseas.

Bright Food has acquired 75 per cent stake in Manassen, in a deal valuing the firm at about A$530 million ($555 million), including debt, making it the Shanghai-based company's largest acquisition after several failed attempts.

Bright Food, China's second largest food company, is buying the stake from Sydney-based Champ Private Equity, which will retain a 15 per cent stake. The group's founder Roy Manassen and his management will own the remaining 10 per cent.

Although both companies did not disclose the deal size, Bright Food will pay about A$400 million ($420 million) for Champ's 75 per cent stake, according to several media reports.

Melbourne-based Manassen is Australia's leading independent grocery importer with most of its brands being  household names in the country.

Its diverse portfolio spans many food categories in the retail and foodservice trade, including, dry groceries, confectionery, biscuits and cakes, perishables and frozen foods.