Snacks giant $URC acquires Griffin’s Foods Ltd., the top snacks firm in New Zealand, for NZ$700 M

Categories: Business Updates

Date Posted: 21 Jul 2014

Universal Robina Corporation (“URC”) today announced that URC International Company Limited (“URC International”), a wholly-owned offshore subsidiary of URC, will acquire 100% of NZ Snack Food Holdings Limited which is the holding company of Griffin’s Foods Limited (“Griffin’s) from management and funds advised by Pacific Equity Partners (“PEP”). The aggregate consideration for the proposed acquisition is approximately NZ$700 million in cash.

The consideration payable by URC International will be settled as to NZ$100 million immediately and the balance on completion. The final amount of consideration will be calculated on completion. Completion of the transaction is expected to occur following consent to 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. URC will provide further updates on the final acquisition consideration, timing of closing and funding sources when they are finalized.

Griffin’s is the #1 snack food company in New Zealand and has a growing presence in Australia as well as a strong platform for Asian expansion. Griffin’s has a diverse portfolio of iconic brands with a 150 year heritage and leading shares in New Zealand across biscuits, salty snacks and wrapped snacks categories. Headquartered in Auckland, Griffin’s has two world-class manufacturing facilities producing a variety of snack products supported by a market-leading innovation program. Griffin’s generates approximately NZ$280M in annual net sales.

The proposed acquisition is expected to transform Griffin’s international growth strategy as it will benefit from URC’s existing distribution networks across the Philippines and other Asian countries. In addition, the acquisition complements URC’s product portfolio, leveraging its distribution strength to sell a premium range of products in its home and international markets.

 

Source: http://edge.pse.com.ph/openDiscViewer.do?edge_no=a96590ae8fab10741db82e377ee70f3b&utm_content=buffera09f9&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer#sthash.iRI7Bwsx.kuSw3G20.dpbs

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