SCPE invests in Singapore food ingredients retailer

Financial details of the investment were not disclosed; in a statement the GP said it had taken a "significant stake" in Phoon Huat. Bloomberg reported that the deal valued the company at S$150-200 million ($111-148 million), citing a person familiar with the matter, who also indicated that SCPE bought a majority stake and plans eventually to increase its holding to 100%.

Phoon Huat's Managing Director Wong Chen Liong said that the investment would help Phoon Huat with its succession planning, which has been underway for the past five years. Currently the company is primarily owned by descendants of founder Wong Tai Fuang.

Phoon Huat was founded in 1947 as a single shop, and has since expanded to service all of Singapore and export to neighboring countries. It mainly supplies baking ingredients such as pie fillings and confectioner's sugar to restaurants and hotels, manages a chain of retail shops in Singapore selling baking ingredients and equipment, and offers baking classes to consumers.

SCPE has made a number of investments in food-related companies across Asia. Last year it committed $52 million to Crystal Jade Group Holdings, a Singapore-based operator of restaurants and bakeries owned by L Capital Asia. It earlier invested $35 million in Vietnamese restaurant operator Golden Gate and led a $48 million investment in Korea-based chain Mad for Garlic.

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• Topics
• Southeast Asia
• Support services
• Consumer
• Buyouts
• Singapore
• Standard Chartered Private Equity