CVC Cap­i­tal snaps up Munchy

The Sun (Malaysia) - - SPEAK UP -

KUALA LUMPUR: Pri­vate eq­uity and in­vest­ment ad­vi­sory firm CVC Cap­i­tal Part­ners Asia Fund IV has ac­quired 100% of Munchy Food In­dus­tries Sdn Bhd and its Malaysian sub­sidiary Munch­world Mar­ket­ing Sdn Bhd.

There was no men­tion of the ac­qui­si­tion value, but ear­lier re­ports in­di­cated that the deal could fetch RM1.1 bil­lion.

Munchy said in a state­ment yes­ter­day that the cor­po­rate ex­er­cise was com­pleted on June 8.

Prior to the ac­qui­si­tion, Dou­ble-V Se­ries Sdn Bhd held a 70% stake in Munchy, while the re­main­ing 30% was owned by fund in­vestor TAP Crunch Sdn Bhd. Dou­ble-V Se­ries is the hold­ing com­pany owned by Munchy’s founders.

Munchy said its man­age­ment team, per­son­nel and busi­ness op­er­at­ing sys­tem have been fully re­tained de­spite the change in own­er­ship. The group is led by CEO Rod­ney Wong and COO Ra­jan Pil­lai.

Founded in 1991, Munchy has been in­volved in the bis­cuit and con­fec­tionery busi­ness for more than 25 years. It has a distri­bu­tion net­work cov­er­ing more than 50 coun­tries. Ac­cord­ing to Nielsen, its prod­ucts had a 21.5% share of Penin­su­lar Malaysia’s RM1.04 bil­lion bis­cuit mar­ket in 2017.

Munchy co-founder L.K. Tan said there had been many of­fers from po­ten­tial in­vestors in the past, but CVC’s vi­sion for the brand aligned ex­tremely well with its iden­tity.

“Their global net­work and ex­pe­ri­ence will be in­valu­able in grow­ing the Munchy’s brand into a global name – with new mar­kets, new tech­nol­ogy and new in­no­va­tions. We are ex­cited to see CVC take the Munchy story into the next phase, be­com­ing a global pow­er­house.”

CVC Cap­i­tal man­ages over US$70 bil­lion (RM280 bil­lion) of as­sets cur­rently and has se­cured com­mit­ments of over US$110 bil­lion from some of the world’s top in­sti­tu­tional in­vestors.

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