Gokongweis hungry for acquisitions: URC snaps up Malaysia's no.1 biscuit maker
Business

Gokongweis hungry for acquisitions: URC snaps up Malaysia’s no.1 biscuit maker

Regional consumer powerhouse Universal Robina Corp. has struck a deal to buy Malaysian biscuit firm Crunchy Foods Sdn. Bhd. for P22.9 billion, adding to its stable of market-leading brands.

URC Snack Foods (Malaysia) Sdn. Bhd., a subsidiary of URC, reached an agreement to acquire 100 percent of Crunchy Foods from an investment holding company controlled by funds managed by CVC Capital Partners at RM 2.81 per share or a total of RM 1.925 billion on a cash-free, debt-free basis.

Crunchy Foods owns Muncy’s, a leading confectiionary brand in Malaysia, as well as well-loved brands Oat Krunch Lexus, Muzic and Choc-O, which are available in more than 50 countries.

URC president and CEO Irwin C. Lee said the acquisition of Munchy’s would allow the company to gain leadership in the Malaysian biscuit market and further scale up its presence in Southeast Asia.

“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 acquisition follows URC’s exit from Oceania with the sale of Snack Brands Australia and New Zealand’s Griffin’s Foods, which raised around $450 million in fresh capital for the Gokongwei-led company.

Proceeds from the sale would be used to “focus on other growth segments and geographies across developing markets”.

 
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