UNIVERSAL Robina Corp. (URC), the food group of the Gokongwei family, on Monday said it sold 40 percent of its consolidated business in Australia and New Zealand unit to Europe-based Intersnack Group.
No amount was given, but URC said the transaction will be a mix of cash and shares of Yarra Valley Snack Foods Pty. Ltd., Intersnack’s food unit in Australia.
“Leveraging on URC and Intersnack’s know-how from their respective markets will yield best practices in manufacturing, supply chain and sustainability practices, setting the groundwork for an even larger and more efficient Oceania operations,” the company said. “Through this transaction, URC monetizes some of the synergies it has generated from its early investments in Australia and New Zealand, while still retaining control and its ability to further create value within and beyond ANZ.”
This transaction will be consumed once the necessary approvals are obtained from the Australian Foreign Investment Review Board and New Zealand Overseas Investment Office, the company said.
Intersnack Group, a privately owned firm, is a European business with operations in 24 countries. The company has built an extensive product portfolio of savory snacks, including potato and tortilla chips, puffed and other corn snacks, baked products, and popcorn and nuts. It currently holds a leading position in all markets, mostly ranking first or second in terms of market shares.
Intersnack generates about $3 billion or about P158.6 billion in net sales across Europe. In Australia, its presence is currently limited to Yarra Valley, a market leader in organic and gluten-free snacks.
In 2016, URC acquired Australia’s Consolidated Snacks Pty. Ltd., the company that owns Sydney-based Snackbrands Australia, the second-largest player in salty snacks.
URC also owns Griffin’s, New Zealand’s No. 1 snack-food company, which it acquired in 2014.