Headland invests in Malaysian snack foods brand

Mamee, which was established by the Pang family, is a leading player in Malaysia's snack food industry with a domestic market share of more than 30%. Its major domestic brands include Mister Potato, Mamee Monster, Double-Decker, Corntoz and Mamee noodles.

The investment, which was for a minority stake, will be used by the company to strengthen its domestic business as well as expand into the region, leveraging on Headland's regional network and support, particularly in Southeast Asia.

"Mamee has proven to be a clear market leader in its core categories in Malaysia and the management team has positioned the company well to enhance its presence and capture significant growth across Southeast Asia over the next few years." Paul Kang, senior partner at Headland Capital Partners, said in a statement.

Southeast Asia consumer plays, particularly in the food and snack segment, have remained popular with private equity as countires like Malaysia, Vietnam and Indonesia continue to offer favourable valuations compared to China and India.  

Recently Creador successfully completed a carve-out of Indonesian cereals and snack foods producer Simba Indosnack Makmur from India's Godrej Consumer Products. Creador CEO Brahmal Vasudevan noted that rapid growth in such businesses eases concerns about rising valuations. 

"These companies are expanding at 35-40% per year, so valuations are reasonable given the growth multiples," he told AVCJ. "Generally, the multiples in Indonesia are still below those of China and India."

 

 

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• Topics
• Southeast Asia
• Consumer
• Expansion
• Investments
• Malaysia
• Consumer
• Headland Capital Partners