After selling its ventures in Australasia, food and beverage conglomerate Universal Robina Corporation (URC) is beefing up its presence in Southeast Asia with the acquisition of Malaysia’s Munchy Food Industries Sdn. Bhd. for about P22.86 billion.

In a disclosure to the Philippine Stock Exchange, IRC said its subsidiary URC Snack Foods (Malaysia) Sdn Bhd has reached an agreement with private equity firm CVC Capital Partners (CVC) to acquire a 100 percent stake in Munchy’s and its subsidiary Munchworld Marketing Sdn. Bhd. from CVC Asia IV.

The acquisition price is 1.925 billion Malaysian Ringgit ($453.5 million) on a “cash-free, debt free” basis.

Established in 1991, Munchy’s is Malaysia’s No.1 biscuit brand that has now flourished into a recognized and successful brand across the region.

Munchy’s offers a wide variety of offerings across all key biscuit segments with well-loved brands including Munchy’s Cream Crackers, LEXUS Cream Sandwich, Oat Krunch, Muzic Wafer, and Choc-O cookies, which are available in most retail outlets in Malaysia and more than 50 countries globally.

“URC is delighted to announce the acquisition of Munchy’s which will add immediate value to our international product portfolio, and scale up our Malaysian market position to leadership in the Biscuits category,” said URC President Irwin C. Lee.

He added that, “Munchy’s, with its strong brands, talented organization, and operational excellence, is a great strategic fit with URC. Together, we will be able to further expand the footprint of URC and Munchy’s brands and unlock growth synergies in Malaysia as well as across the ASEAN region.”

“This has been a highly successful partnership between CVC and the excellent leadership team at Munchy’s that has seen the company expand into new geographies and the launch of numerous innovative and delicious products,” said CVC Senior Managing Director Alvin Lim.

He noted that, “Universal Robina Corporation is the perfect new home for Munchy’s and we wish them the very best for the future.”

Munchy’s CEO Rodney Wong said “We are excited to become part of URC. This move will allow Munchy’s to have access to Research & Development expertise in multiple categories, enhance market knowledge, route to market, and manufacturing capabilities in countries outside of Malaysia.”

“This will translate to development of innovative forward-thinking offerings to our consumers and strengthen our presence in the ASEAN market,” he added.

Wong also pointed out that, “Both companies share a common purpose, values & ambition where we both put people first in everything we do, looking to delight everyone with good food choices and inspire happiness together. We would like to thank CVC for their expertise and support over the last three years and look forward for the next phase of profitable growth for Munchy’s.”

The transaction has been approved by the board of directors of both companies and is expected to close by December 2021 subject to fulfillment of customary closing conditions.