INDONESIA— Private-equity firm CVC Capital Partners is reportedly in talks to sell its stake in Indonesian snack food business GarudaFood Putri Putri Jaya in a deal which could value the company at up to US$1.5bn.
According to Reuters, CVC has hired advisers to look at offloading the 20% state it acquired in the snack business four years ago, investing about US$150 million just ahead of the company’s IPO on the Jakarta Stock Exchange. From this CVC could now fetch as much as US$300 million.
GarudaFood markets products across savoury snacks, confectionery, biscuits and dairy. Its brands include Garuda, Gery and Chocolatos. The group, which owns five factories, exports to more than 20 countries and says its focus is on the ASEAN region, China and India.
The company’s origins date back to 1994 but it was listed in 2018. It owns 49% of Hormel GarudaFood Jaya, a venture with US manufacturer Hormel Foods, through which it sells products like Skippy nut butter. The group also holds a 66% stake in Mulia Boga Raya, an Indonesia dairy processor.
GarudaFood is valued at US$1.34 billion, and its shares have climbed 47 per cent over the past year
In 2021, GarudaFood’s sales rose 14% to IDR8.8trn (US$590m). Its export sales were up 7.1% to IDR390.7m. Net profit more than doubled to IDR493bn (US$33.3 million). The company is valued at US$1.34 billion, and its shares have climbed 47 per cent over the past year.
Other previous Indonesian investments from CVC include Siloam International Hospitals, MAP Aktif Adiperkasa and SOHO Global Health.
CVC’s Indonesian portfolio includes Siloam International Hospitals (SILO.JK), sports and children’s products retailer MAP Aktif Adiperkasa (MAPA.JK) and pharmaceutical distributor SOHO Global Health (SOHO.JK).
CVC also in talks to sell its 26% stake, currently worth about US$240 million, in Siloam, said two separate sources.
Europe-based CVC is looking to exit this profitable investment at a time when cashed-up private equity firms are scouting for high growth opportunities in Asia.
Indonesia, Southeast Asia’s largest economy, reported second-quarter gross domestic product growth of 5.4%, the fastest growth rate in a year.
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