Food manufacturer Universal Robina Corp. disclosed Friday a plan to acquire 100 percent of the Malaysia-based snack food group behind the brand Munchy’s for RM1.925 billion, or nearly P23 billion.
URC said in a disclosure to the stock exchange it would acquire Munchy Food Industries Sdn. Bhd. and its subsidiary Munchworld Marketing Sdn. Bhd. from private equity fund CVC Capital Partners on a cash-free and debt-free basis.
The deal is expected to enable URC to scale up its business in Malaysia and further increase its presence across the Southeast Asian region.
“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 president and chief executive Irwin Lee said.
“Munchy’s, with its strong brands, talented organization and operational excellence 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,” Lee said.
The final purchase consideration will be determined post-completion, subject to adjustment mechanisms for cash and debt levels by completion. The deal is expected to close by December 2021.
Munchy’s chief executive Rodney Wong said the deal would allow the company to have access to research and development expertise in multiple categories, enhance market knowledge, route to market and manufacturing capabilities in countries outside of Malaysia.
“This will translate to development of innovative forward-thinking offerings to our consumers and strengthen our presence in the ASEAN market,” Wong said.
Munchy’s, which started in 1991, is one of the leading players in the biscuits category in Malaysia and the market leader in several key segments. It also expanded its footprint outside of Malaysia, being present in more than 50 countries.
URC is one of the largest branded food product companies in the Philippines and established a strong presence in the ASEAN region. The company is involved in a wide range of food-related businesses, including the manufacture and distribution of branded consumer food.
The acquisition of Munchy’s was announced three months after URC exited the salty and sweet snacks business in Australia and New Zealand.
