Universal Robina Corporation, one of the largest branded food and beverage companies in the Philippines, recently announced its agreement to acquire Munchy’s, Malaysia’s most popular biscuit brand, in a deal worth 1.925 billion Malaysian ringgit (approximately PHP 22.9 billion).
The popular Malaysian brand’s pending acquisition was coursed through URC’s Malaysian subsidiary, URC Snack Foods (Malaysia) Sdn Bhd, which reached an agreement with the private equity firm CVC Capital Partners Asia Fund IV to acquire a 100% stake in Munchy Food Industries Sdn Bhd and its subsidiary MunchWorld Marketing Sdn Bhd on a “cash-free, debt free” basis.
Munchy’s diverse snack food portfolio includes the brands Munchy’s Cream Crackers, Lexus Cream Sandwich, Oat Krunch, Muzic Wafer, and Choc-O cookies, which are sold in most retail outlets in Malaysia and available in more than 50 countries globally. Bringing the Malaysian snack food giant into the URC fold further enhances the Filipino multinational’s presence in Southeast Asia.
According to URC President and CEO Irwin C. Lee, the deal “will add immediate value to our international product portfolio, and scale up our Malaysian market position to leadership in the Biscuits category. Munchy’s, with its strong brands, talented organization, and operational excellence, is a great strategic fit with URC. Together, we will be able to further expand the footprint of URC and Munchy’s brands and unlock growth synergies in Malaysia as well as across the ASEAN region.”
Alvin Lim, senior managing director of CVC, said: “This has been a highly successful partnership between CVC and the excellent leadership team at Munchy’s that has seen the company expand into new geographies and the launch of numerous innovative and delicious products. Universal Robina Corporation is the perfect new home for Munchy’s and we wish them the very best for the future.”
Rodney Wong, Munchy’s CEO, remarked: “We are excited to become part of URC. This move will allow Munchy’s to have access to research and development expertise in multiple categories, enhance market knowledge, route to market, and manufacturing capabilities in countries outside of Malaysia. This will translate to development of innovative forward-thinking offerings to our consumers and strengthen our presence in the ASEAN market. Both companies share a common purpose, values, and ambition where we both put people first in everything we do, looking to delight everyone with good food choices and inspire happiness together. We would like to thank CVC for their expertise and support over the last three years and look forward for the next phase of profitable growth for Munchy’s.”
The transaction has been approved by the board of directors of both companies and is expected to close by December 2021, subject to fulfilment of customary closing conditions.
For more information on URC, visit urc.com.ph