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CVC Capital acquires Malaysian snack firm Munchy Food

FBR Staff Writer Published 14 June 2018

CVC Capital Partners, a Luxembourg-based private equity firm, has acquired Malaysian snack producer Munchy Food Industries (MFI) from Double-V Series and TAP Crunch for an undisclosed price.

The transaction, which was carried out through its CVC Capital Partners Asia Fund IV (CVC Asia IV), also includes purchase of MFI’s subsidiary Munchworld Marketing.

While Double-V Series owned 70% stake in MFI, TAP Crunch owned the remaining 30% interest.

CVC Capital Partners managing director Alvin Lim said: "This is an exciting opportunity to invest in a leading player with a consistent track record of growth and a highly cash-generative business.

“Over the years, MFI has built an exceptional platform with proven scalability to meet the demands of the company's growing consumer base. We look forward to working with MFI's management team to help them achieve their strategic plan of driving value over the next few years to further grow the company."

Operating mainly in the biscuits and confectionery business segments, MFI has a distribution presence in more than 50 countries.

The company, which was founded in 1991, is the manufacturer of cookies, biscuits and cracker products like Munchy's, Oat Krunch, Lexus, Muzic, Captain Munch, Assorted and Choc-O among others.

MFI co-founder LK Tan said: "There were many offers from potential investors in the past, but CVC's vision for the brand aligned extremely well with our identity.

“Their global network and experience will be invaluable in growing the Munchy's brand into a global name – with new markets, new technology and new innovations. We are excited to see CVC take the Munchy story into the next phase, becoming a global powerhouse."

CVC Capital Partners has fully retained the original management team, personnel and business operating system of MFI, including its CEO Rodney Wong and COO Rajan Pillai.

Last month, MFI through its Muchico Bakery joint venture with Chipita launched a pre-packed croissant product dubbed 7DAYS Croissant by Munchy’s in Malaysia.

Image: Munchy Food Industries’ Oat Krunch Chia Seed product. Photo: courtesy of Munchy's Group.