Munchy Food Industries Sdn Bhd ("MFI") and CVC Capital Partners Asia Fund IV ("CVC Asia IV") today announced that CVC Asia IV has acquired a 100% stake in MFI and its Malaysian subsidiary Munchworld Marketing Sdn Bhd. The acquisition was completed on 8 June 2018. Prior to the acquisition, MFI was 70% held by Double-V Series Sdn Bhd, the holding company owned by the founders of MFI, while fund investor TAP Crunch Sdn Bhd held the remaining 30% stake.
Following the change in ownership, the management team, personnel and business operating system have been fully retained, and are led by Chief Executive Officer ("CEO") Rodney Wong, who has been with the Group since 2014, together with Chief Operating Officer ("COO") Rajan Pillai, who joined the Group in 2012. The board of directors for MFI will comprise of representatives appointed by CVC Asia IV, the CEO and COO.
Founded in 1991, MFI has a distribution reach of over 50 countries and comes with over 25 years' history in the biscuits and confectionery business. Its products include Munchy's, Oat Krunch, Lexus, Muzic and Choc-O. According to Nielsen, Munchy's had a 21.5% share of Peninsular Malaysia's RM1.044 billion biscuit market in 20171.
Mr LK Tan, co-founder of MFI, said: "As a homegrown Malaysian brand, the Munchy team is proud that our hard work and product innovation over 25 years has enabled us to grow into the regional business we are today. 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."
Mr Alvin Lim, Managing Director at CVC Capital Partners, added: "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."
1Nielsen retail audit, FY2017