Universal Robina Corp. said Monday it is selling its 40-percent stake in Australia and New Zealand businesses to Europe-based Intersnack Group for an undisclosed amount.
URC said in a disclosure to the stock exchange the respective board of directors of unit URC Oceania Company Limited and Intersnack approved the former’s sale and the latter’s acquisition of a 40-percent stake in URC’s consolidated businesses in Australia and New Zealand.
URC said the consideration for the transaction would be a mix of cash and shares of Yarra Valley Snack Foods Pty. Ltd., Intersnack’s natural snack food unit in Australia.
“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 even larger and more efficient Oceania operations,” URC said.
“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 ANZ,” it said.
URC Oceania owns Snack Brands Australia, the country’s second largest salty snacks player and Griffin’s which is New Zealand’s leading biscuit and snack food company.
URC Oceania’s topline growth posted mixed results in 2018, with Snack Brands growing driven by the Nice and Natural brand and Griffin’s topline declining due to competitive pricing pressures on sweet biscuits and salty snacks.
URC said the transaction with Intersnack would be completed once the necessary approvals were obtained from the Australian Foreign Investment Review Board and New Zealand Overseas Investment Office.
The privately-owned Intersnack Group is a European business with operations in 24 countries. The company has built an extensive product portfolio of savory snacks including potato and tortilla chips, puffed and other corn snacks, baked products, popcorn, and nuts. It holds a leading position in all markets and generates about $3 billion (P158.6 billion ) in net sales across Europe.
In Australia, Intersnack’s presence is currently limited to Yarra Valley, a market leader in better-for-you, organic and gluten-free snacks.