Hormel Foods has acquired a minority interest in Indonesia’s GarudaFood Putra Putri Jaya from CVC Capital Partners and shareholders.
The US-based group had earlier been linked with a potential deal with the private-equity firm in October. The Spam and Skippy peanut-butter maker has now revealed it has taken a 29% stake in the savoury snacks, confectionery, biscuits and dairy producer.
Hormel, which did not disclose the financial terms behind the transaction, said GarudaFood is “one of the largest food and beverage companies in Indonesia”. The deal with CVC, which also included “other shareholders”, closed yesterday (15 December).
Jim Snee, Hormel’s chairman, president and CEO, said: “Garudafood is a market leader, with strong and reputable brands, local expertise and a best-in-class distribution network. We look forward to accelerating our presence in these high-growth geographies and the snacking and entertaining category as we further leverage the strengths and capabilities of both companies.”
Garudafood’s brands include Garudapeanut snacks, Gery biscuits and confectionery and Chocolatos wafer sticks. The company is owned by the Soenjoto family, according to Luxembourg-based CVC.
Andy Purwohardono, a partner at the private-equity firm’s local office, confirmed it had sold a “significant portion of the shares” to Hormel, previously suggested in October to be around 20%.
Garudafood president Hardianto Atmadja added: “Hormel Foods has more than 130 years of company history, so there are many things that we can learn from them. There are some potential synergies and growth opportunities that we have identified, such as combining the strengths and expertise of Hormel Foods with our presence and local market knowledge.”
