ASIA – Universal Robina Corporation (URC), a Philippine-based snack food and beverage company has partnered with the Dutch savory snacks producer Intersnack Group to boost its operations in Oceania.
As part of the transaction, URC Oceania Company Limited, a subsidiary of URC has sold 40% of URC’s businesses in Australia and New Zealand for an undisclosed sum.
The deal involves a mix of cash and shares of Intersnack’s Australian unit Yarra Valley Snack Foods Proprietary Limited.
Subject to regulatory approval by Australian Foreign Investment Review Board and the New Zealand Overseas Investment Office, the transaction leverages on the companies’ expertise in snacking.
“Through this transaction, URC monetizes some of the synergies it has generated from its early investments in Australia and New Zealand, while still retaining control and its ability to further create value within and beyond the countries,” said the company.
“Leveraging on URC and Intersnack’s know-how from their respective markets will yield best practices in manufacturing, supply chain, and sustainability practices, setting the groundwork for an even larger and more efficient Oceania operation.”
Both URC and Intersnack specialize in snack foods such as popcorn, nuts, potato chips and tortilla chips.
Intersnack is active in 24 countries, and generally holds first and second place in terms of market share, with an annual turnover of over €2.5 billion (US$2.8 billion).
Intersnack, through its subsidiary KP Snacks last year acquired Popchips Ltd, which owns and operates the Popchips brand in Europe.
With Popchips deal, the company said it was looking to expand its operations in the UK and across Europe.
Popchips Ltd is a subsidiary of parent company Popchips Inc, a brand of processed potato and corn products, operating in North America and other international markets.
In the same year, KP Snacks secured a deal to acquire Tyrrells, Inc. and its global portfolio of better-for-you, premium snack brands from The Hershey Company.
The transaction included two manufacturing sites in the UK, along with US manufacturing capabilities, the Aroma Snacks business in Germany and Yarra Valley Snack Foods in Australia.