TPG, Northstar acquire majority stake in Indonesia’s largest dairy business PT Green Fields

INDONESIA  –  American investment company TPG and Singaporean private equity firm Northstar Group have jointly acquired an 80% in Indonesia’s largest dairy business, PT Green Fields.

The two private equity buy out firms acquired the stake from Japfa Limited, a Singapore-based pan-Asian, industrial agri-food company, in a deal estimated to be worth US$236 million.

According to its website, Japfa established the Indonesian dairy business in 1997, growing it into one of the largest dairy farms in Southeast Asia.

The business is vertically integrated with more than 16,000 Holstein and Hersey Cattle producing one of the highest volumes of any farm in Indonesia.

The milk is then processed by the company into a range of dairy products including fresh milk, yogurts, UHT milk, and premium cheese.

As a leading dairy farm in Indonesia, PT Greenfield exports products to southeast Asian countries including Singapore, Malaysia, Brunei, and Myanmar.

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Japfa will however, maintain a 20% stake in the business and committed to supporting the new investors in managing the business.

It further noted that  with the sale of a majority stake to TPG and Northstar, the Indonesian dairy business will now be in a better position to access both funding and senior management expertise- all which are necessary to further grow the business.

Commenting in the sale, Japfa CEO, Tan Yong Nang said: “This group’s dairy business has grown considerably in recent years both in China and Southeast Asia and there is potential for future growth.”

“We are pleased to form this strategic partnership with TPG and Northstar to accelerate the next phase of development in Southeast Asia.”

On his part, David Tan, Managing Director of TPG Capital Asia said: “We are very excited to enter the partnership with Japfa and North Starr. We look forward to helping the business further expand its leading position in the dairy sector and deliver accelerated growth amid the rising consumption in Southeast Asia.”

Credit Suisse (Singapore) was  the exclusive financial advisor to Japfa on the deal with TPG and Northstar.

In July, Japfa completed the sale of a 25% stake in its China dairy farming business to Japan’s Meiji Co. Ltd for $254.4 million.

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