Nikkei -November 26, 2021 4:43 PM
Crunchy Foods owns Munchy’s, a leading confectionery brand in Malaysia, as well as Oat Krunch, Lexus, Muzic and Choc-O. (Facebook pic)
MANILA: Philippine snack maker Universal Robina on Friday said it is buying Malaysian biscuit producer Crunchy Foods in a deal worth RM1.93 billion.
Crunchy Foods owns Munchy’s, a leading confectionery brand in Malaysia, as well as Oat Krunch, Lexus, Muzic and Choc-O, which are sold in over 50 countries.
Universal Robina said it acquired its peer from CVC Capital Partners on a “cash-free, debt-free” basis.
CVC took over Munchy’s in 2018.
Universal Robina CEO Irwin Lee called Munchy’s a “great strategic fit” with Universal Robina’s Southeast Asian expansion.
“Together, we will be able to further expand the footprint of Universal Robina Corporation and Munchy’s and unlock growth synergies in Malaysia as well as across the Asean region,” Lee said in a statement.
Munchy CEO Rodney Wong said: “We are excited to become part of URC.
“This move will allow Munchy’s to have access to research and development expertise in multiple categories, and enhance market knowledge, routes to market and manufacturing capabilities in countries outside of Malaysia.”
The acquisition follows Universal Robina’s exit from Oceania, which generated sales of roughly US$450 million (RM1.9 billion) in 2020 through its previous subsidiaries, Snack Brands Australia and New Zealand’s Griffin’s Foods.
The Philippine company in July sold its 60% stake in the two companies for an undisclosed amount to its joint venture partner, Intersnack Group, a German food company.
At the time, Lee said the company would ”continue to focus on other growth segments and geographies across developing markets”.
Universal Robina, a unit of Gokongwei family-led conglomerate JG Summit Holdings, has a footprint across Southeast Asia.
In Malaysia, it sells Jack ‘n Jill potato chips and Cream-O cookies.
The deal with Crunchy Foods effectively makes Malaysia a major market outside the Philippines for the company.
Universal Robina logged sales of 133.1 billion pesos (RM11.19 billion) last year, slightly slower than 2019, with overseas sales accounting for around 30% of the total.
