CVC acquires Malaysia's Munchy Food Industries

The private equity firm invested via its fourth Asia fund, which closed at $3.5 billion in 2014 and writes equity checks of $100-300 million. The sellers included Munchy founders, which controlled a 70% stake, and an entity known as TAP Crunch, which held the remaining 30%.

“There were many offers from potential investors in the past, but CVC’s vision for the brand aligned extremely well with our identity,” LK Tan, co-founder of Munchy, said in a statement. “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.”

Founded in 1991, Munchy distributes a range of branded biscuits, snacks, and confectionary products to more than 50 countries. The company operates in part via a subsidiary known as Muchworld Marketing in Malaysia, where it was said to control a 21.5% share of the approximately $261 million regional biscuit market as of 2017.

Alvin Lim, a managing director at CVC, described Munchy as a leading player in its field with a consistent track record and a highly cash-generative business model that has proven scalable with a growing consumer base. His firm will maintain the existing management, personnel, and business operating system.

Previous Malaysian activity by CVC’s fourth Asia fund includes participation in a $1.1 billion acquisition of funeral services provider Nirvana Asia. The firm also still holds Malaysia's two main KFC franchisees - KFC Holdings and QSR Brands - which were acquired in 2012 in conjunction with Johor Corp. and Employees Provident Fund.

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• Topics
• Southeast Asia
• Consumer
• Buyouts
• Malaysia
• CVC Capital Partners