Universal Robina Corp. is widening its
Asia-Pacific presence with the acquisition of Auckland-based Griffin’s Foods
Ltd., New Zealand’s leading snack food manufacturer, for about NZ$700 million
(US$608 million).
URC
told the Philippine Stock Exchange on Monday that it had agreed to acquire
through a wholly owned offshore subsidiary a 100-per cent direct stake in NZ
Snack Food Holdings Ltd., the holding company of Griffin’s Foods, from
management and funds advised by Pacific Equity Partners.
Griffin’s
was described as the No. 1 snack food company in New Zealand with the leading
market share in biscuits (where it has a large portfolio of iconic brands), the
second largest market share in salty snacks (ETA brand) and the leading share
in wrapped snacks (Nice & Natural brand).
Based
in Auckland, Griffin’s has two manufacturing facilities producing a variety of
snack products and a 150-year heritage. It generates about NZ$280 million ($235
million) in annual net sales and cash flow based on earnings before interest,
taxes, depreciation and amortisation of NZ$78 million ($67.8 million).
The
company is also a major player and supplier of retailer branded products under
the same categories for major accounts in New Zealand and Australia and is fast
expanding its exports business in Asia.
The
PSE, for its part, suspended trading on URC on Monday pending the submission of
a comprehensive disclosure. The local bourse invoked the rule on disclosure of
substantial acquisitions and reverse takeovers of listed firms.
URC has
agreed to pay an initial NZ$100 million and the balance will be paid on
completion, during which the final amount will be calculated.
Completion
of the transaction is expected once the parties obtain approval for the
transfer of shares granted under the Overseas Investment Act 2005 (New Zealand)
and the Overseas Investment Regulations 2005 (New Zealand), or such other date
as the parties may agree.
URC
International will fund the transaction from long-term debt financing and
internal sources, the disclosure said.
Doris
C. Dumlao
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated
in Singapore since 1994.
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