Universal Robina Corp. (URC) is buying Malaysia’s Crunchy Foods Sdn. Bhd. (CSFB) for an estimated RM1.925 billion, equivalent to P22.9 billion, on a cash-free and debt-free basis and subject to due diligence. The selling price per share is approximately RM2.81.
URC said the sale will allow the company “to become a market leader in Malaysia in the biscuit segment.
“CFSB is also expected to enjoy some synergy in Malaysia with the local affiliate of URC, URC Malaysia,” it said.
URC said the sale is being made through unit URC Snack Foods (Malaysia) Sdn. Bhd.
“The final amount of consideration will be determined post completion, subject to cash and debt levels at the time of completion,” it said.
CFSB is in the business of investment holding and the manufacturing, distribution, sales and marketing of biscuits, confectionary and related food products. It was incorporated on April 25, 2018 as an investment holding company. It is the 100 percent owner of Munchy Food Industries Sdn Bhd and Munchworld Marketing Sdn Bhd, which are manufacturers of snacks and edible food in Malaysia.
“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. 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,” said Irwin Lee, URC president.
