SHANGHAI - Bright Food Group Co might make a purchase in Europe or Australia in as soon as six months as it seeks to boost overseas sales to as much as 30 percent of the total in five years.

"Many projects are under negotiation," Chairman Wang Zongnan said in an Aug 5 interview in Shanghai, referring to overseas purchases.

"The next acquisition may take place in half a year to a year."

Potential targets could include European or Australian companies in the food distribution and sugar industries, Wang said at an event marking Bright Food's five-year anniversary. Buying overseas assets could help the closely held company make the best use of its "extremely" strong distribution network in China, said Shaun Rein, managing director of Shanghai-based China Market Research Group.

"Rather than spending the money and time building up new brands, it makes sense for them to acquire a well-established foreign brand and leverage its strong distribution," said Rein.

Bright Food is considering making an offer for Australia's Treasury Wine Estates Ltd, the world's second-largest winemaker, two people familiar with the matter said in July.

White Rabbit

The maker of "Big White Rabbit" brand candy earlier this year lost out to General Mills Inc for a stake in French yogurt maker Yoplait SA. Last year, Wilmar International Ltd outbid Bright Food for CSR Ltd's sugar unit.

"The group will continue to actively pursue opportunities to cooperate with foreign companies, in order to broaden its resources base and expand distribution," Wang said in a speech to employees at the ceremony.

There have been more than $400 billion worth of cross- border deals in the food and beverage industry over the past five years, with Chinese mainland companies accounting for less than $6 billion, according to data compiled by Bloomberg.

Bright Food, with interests that span food, beverages, farming and retailing, was established by merging four State-owned companies in August 2006.

Wang in April said he aimed to boost revenue from outside China to as much as 30 percent of the total, from the current 5 percent.

Fundraising Plans

First-half profit rose 21 percent to 1.63 billion yuan ($254 million), Bright Food said in a statement released before the ceremony. Sales increased 18 percent to 35.7 billion yuan. The company aims to reach sales of 120 billion yuan in 2015, according to Wang.

"Bright" is a brand created by Shanghai Yimin Foods Co, one of the four companies that merged to form Bright Food.

Bright Food might seek to raise 6 billion yuan through an initial public offering of its sugar unit and a bond sale, Wang said in April.

It inquired last year about acquiring GNC Holdings Inc, the retailer of vitamins and supplements, before the Pittsburgh-based chain raised $360 million in an IPO.

The company is in advanced talks to buy Australia-based Manassen Foods Australia Pty Ltd from Champ Private Equity, the Australian Financial Review reported last month, without saying where it got the information.

Bloomberg News