MALAYSIA – Philippines-based food and beverage company, Universal Robina Corporation (URC) is set to have an expanded international product portfolio with the acquisition of Munchy Food Industries.
Founded in 1991, Munchy Food Industry is a leading snack manufacturer in Malaysia and a category leader in the biscuity category.
Munchy’s brands include Munchy’s Cream Crackers, Lexus Cream Sandwich, Oat Krunch, Muzic Wafer, and Choc-O cookies.
The company’s brands are available at Malaysian retailers and in over 50 countries worldwide.
In the deal, URC has agreed to acquire 100% of Munchy Food Industries and its wholly-owned subsidiary Munchworld Marketing from CVC Capital Partners for MYR 1.93 billion (approx. $453.8 million).
“URC is delighted to announce the acquisition of Munchy’s, which will add immediate value to our international product portfolio, and scale up our Malaysian market position to leadership in the biscuits category,” URC’s president and CEO, Irwin Lee, said.
“Munchy’s…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.”
Munchy’s CEO Rodney Wong is confident that the move will allow Munchy to have access to research and development expertise in multiple categories.
He further adds that incorporation to URC will enhance his company’s market knowledge, route to market and manufacturing capabilities in countries outside of Malaysia.
“This will translate to the development of innovative forward-thinking offerings to our consumers and strengthen our presence in the ASEAN market,” he adds.
CVC’s senior MD, Alvin Lim, said the highly successful partnership between CVC and the excellent leadership team at Munchy’s 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,” he added.
The transaction is expected to close by next month and is subject to customary closing conditions.
Earlier, Universal Robina Corporation reported its third-quarter results where its net income significantly increased by 40 percent to P10.5 billion (US$210 million) from the gain on sale of idle land and the favorable impact of the CREATE law.
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