Philippines' Monde Nissin to buy Quorn Foods from PE owners

Monde Nissin is one of a number of Southeast Asian companies looking to build increasingly global and diversified consumer businesses. In the last seven months alone it has agreed three acquisitions in Australia: juice brand Nudie, dips producer Black Swan, and Menora Foods.

Quorn is a meat substitute derived from a fungus grown through a fermentation process not dissimilar to that used in the production of yogurt. It is sold as a cooking ingredient and in a range of own-brand ready-to-cook meals. Quorn Foods has a retail presence in 15 countries and generated sales of GBP150.3 million in 2014.

The UK-based company was acquired by Exponent in 2011 for GBP205 million, with ICG providing GBP80 million in junior debt and equity. The seller was Premier Foods, which had bought Quorn from Montagu Private Equity in 2005. Exponent claims that in the last five years Quorn has helped take 60 billion calories out of diets.

"Monde Nissin have been investing in 'on-trend, better for you products' internationally in line with our strategy to become a global diversified food company. Quorn represents an important new leg in our offering. We are excited by the growth potential of the global meat alternatives market, which complements our strategy perfectly," Henry Soesanto, CEO of Monde Nissin, said in a statement.

Kevin Brennan, CEO of Quorn, added that the objective is to create a $1 billion business. He expects the new owner to support the expansion of the brand in Asia.

Monde Nissin produces instant noodles, baked goods, biscuits and snacks, with a brand portfolio that includes Lucky Me, Monde, Nissin, Voice and Bingo. It is not the first Philippines food company to acquire assets from private equity. Last year, Universal Robina bought New Zealand-based snack maker Griffin's Foods from Pacific Equity Partners for $608 million.

Citigroup and Courtyard Hill advised Monde Nissin, with Linklaters serving as legal counsel. Exponent and ICG were advised by Houlihan Lokey, Perella Weinberg and Spayne Linday and legally represented by Allen & Overy. The transaction, which is expected to close by the end of October, is being financed by BPI, BDO and Metro Bank.

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