CVC exits Malaysia snacks business to Universal Robina

URC said in a filing that it would buy the asset on a cash-free, debt-free basis. CVC acquired 100% of Munchy in 2018 for an undisclosed sum. The founders offloaded 70%, while a financial investor known as TAP Crunch, sold the remaining 30%.

Founded in 1991, Munchy distributes a range of branded biscuits, snacks, and confectionery products to more than 50 countries, operating internationally through Munchworld Marketing. Its portfolio includes Munchy’s Crackers, Lexus, Oat Krunch, Muzic, Choc-O, and Captain Munch.

Prior to CVC’s investment, the company held a 21.5% share of the Malaysian peninsula’s RMB1.04 billion biscuit market. The private equity firm described Munchy at the time as an established industry leader with a scalable and highly cash-generative business model.

URC already has its own branded consumer snack foods and beverages business, as well as exposure to commodities such as sugar and flour, and to agro-industrial products like hogs and animal feed. Sales reached PHP133.1 billion ($2.6 billion) in 2020.

URC has acquired assets from private equity before. In 2014, the company bought Griffin’s Foods – which owns biscuit brands such as Cookie Bear and Huntley & Palmer – from Pacific Equity Partners for NZ$700 million ($608 million).

CVC made the Munchy investment through its fourth pan-Asia fund, which closed at $3.5 billion in 2014. The private equity firm also has exposure to Malaysia’s consumer sector through the two main national KFC franchises, KFC Holdings and QSR Brands. They were acquired in 2012 for $1.7 billion.

Last year, the private equity firm secured a significant exit in Southeast Asia when Kimberly-Clark purchased personal care products manufacturer Softex Indonesia for $1.2 billion. CVC generated a 3.3x return on its minority stake.

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• Topics
• Southeast Asia
• Consumer
• Trade sale
• Malaysia
• CVC Capital Partners