PepsiCo has signed a definitive agreement with the China-based Haoxiangni Health Food company to acquire Hangzhou Haomusi Food (Be & Cheery) for $705m.

Established in 2003, the confectionary industry regards Be & Cheery as one of the largest online snacks companies in China.

Its portfolio includes nuts, dried fruits, meat snacks, baked goods and confectionery. It sells its products through the major e-commerce platforms in China.

Be & Cheery chairman Haoqun Qiu said: “We are thrilled to be joining the PepsiCo family. Be & Cheery was founded to bring more people convenient and nutritious snacks.

“We believe PepsiCo’s strong branding and route-to-market capabilities, as well as global supply chain network, will help us deliver and expand on that mission.

“PepsiCo and Be & Cheery are jointly confident in the prospects for China’s snacks industry and share a commitment to invest in consumer-led and digitalised capabilities. We are excited to join forces with them as we look to expand our reach and grow Be & Cheery to the next level.”

Completion of the deal is Haoxiangni shareholder vote, certain regulatory approvals and other customary conditions.

For nearly four decades PepsiCo has been operating in the Chinese market. This acquisition forms part of its objective to become China’s leading consumer-centric food and beverage company.

PepsiCo Greater China CEO Ram Krishnan said: “Be & Cheery is highly complementary to our existing China business with its broad product portfolio, asset-light model and focus on e-commerce.

“As we look to accelerate growth in key markets around the world and further grow ‘in China, for China, with China’, Be & Cheery adds direct-to-consumer capability, positioning us to capitalise on continued growth in e-commerce and a local brand that is able to stretch across a broad portfolio of products, through both online and offline channels.”