Chip manufacturer, Snack Brands Australia, has been sold to one of the largest branded consumer food and beverage product companies in the Philippines, Universal Robina Corporation (URC), with the deal understood to be worth $A600 million.
According to IbisWorld, Snack Brands is the second largest chip manufacturer in Australia, behind Frito-Lay Australia, holding around 11.4 per cent market share. Its brands include CC’s, Thins, Kettle, Natural Chip Company, Cheezels, and Samboy. Earlier this year Snack Brands introduced US-based potato rings range, Hoop Las, to the Australian market.
URC, a publicly listed company on the Philippine Stock Exchange, will continue to operate Snack Brands as an independent operation, with management and manufacturing jobs retained.
Snack Brands Australia CEO, Mr Paul Musgrave, said the URC acquisition is a growth oriented transaction.
“What this achieves for the business is to take Australian manufactured product, with its distinct food security advantage, into Asian markets with the benefit of an established distribution force,” Mr Musgrave said.
“It means there are no intended job losses but instead a stronger growth path with a new partner and the prospects of adding new URC product categories from New Zealand to our local markets. It is also expected to be a positive for many of SnackBrands suppliers such as potato and corn growers,” Mr Musgrave said.
Advisers to Snack Brands in this transaction have been corporate advisory firm, Intrinsic Partners, and law firm, King & Wood Mallesons. The acquisition is subject to approval by the Foreign Investment Review Board.