Monkey noodles, the noodle maker that is the No. 2 brand in the U.S., said it will purchase noodles from a noodles brand owned by a Chinese company.
Monkey’s shares are up nearly 4 percent in premarket trading Wednesday.
The deal is the latest in a series of moves by Monkey to diversify its portfolio and the noodles brand has made strides in that direction.
Monkey has been buying noodles from Chinese companies, like Tsingtao, since 2007.
Monkey also has been selling noodles to customers in Europe.
Monkey plans to use the proceeds to expand its business in North America.
Monkey will buy the noodles business, said a company statement.
The company said it expects to earn about $2.2 billion in profit from the deal.
Monkey was the No-2 noodle seller in the country in 2014 and its noodle market share jumped from 9 percent in 2014 to 23 percent in 2017.
The noodle business was valued at about $7.8 billion in 2016.
Monkey shares have risen about 27 percent since the start of the year.
Monkey, which has more than 1,500 stores in the United States, Canada, Mexico and China, said it plans to continue to focus on Asia, including Hong Kong, Taiwan and Japan.
Monkey is a unit of Chinese conglomerate Laiyun Group, which also owns the Chinese noodles maker Wonten.