Investcorp acquires Singapore food company Viz Branz

Investcorp is transacting via its Asia Food Growth Fund, a joint venture with China Resources and Fung Strategic Holdings that achieved a first close of $275 million earlier this year. The fund, which has a target of $500 million, is said to be the first vehicle in the region dedicated to local food brands. It focuses on fragmented segments such as condiments, packaged foods, and healthy snacks.

Viz Branz is a family-owned company set up in 1988 with 1,300 employees across China and Myanmar. Its brands include Gold Roast, which has 35% of the instant cereal market in southern China, as well as Royal Myanmar Tea, Cafe 21, and cereal-based drink maker Calsome. China represents about 65% of revenue, which came to S$170 million ($127 million) during the 12 months to June.

“We believe that Viz Branz is well-positioned for expansion through increasing distribution in China and other parts of Southeast Asia, delivering product innovation and investing in the company’s operational and multi-channel capabilities as well as through add-on acquisitions,” Hazem Ben-Gacem, co-CEO of Investcorp, said in a statement.

Investcorp estimates that China’s cereals market is worth around $1 billion and forecasted to grow at 7% a year to reach $1.4 billion by 2024. “We believe that the company’s market-leading positions could be leveraged to create a sizeable branded, packaged F&B [food and beverage] platform in China and Southeast Asia,” Ben-Gacem added.

Viz Branz is Investcorp’s 16th investment in the F&B space globally. Previous activity in Asia includes participation in a $121 million Series C round for FreshtoHome, an Indian food delivery platform that claims to be the world’s largest fully integrated online brand in fresh fish and meat e-commerce.

Investcorp also teamed up with China Resources and Fung earlier this year to acquire a 65% stake in Hong Kong supermarket operator City Super. Financial details were not been disclosed, although Bloomberg reported the deal valued City Super at around $300 million.

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• Topics
• Southeast Asia
• Buyouts
• Consumer
• Singapore
• Investcorp
• China Resources Capital
• Fung Strategic Holdings
• Food