After healthcare, Investcorp turns its attention on a Asian cereal brand
Family-owned Viz Branz Holdings has a roster of popular F&B brands in China
Dubai: After Chinese healthcare companies and a supermarket chain, Bahrain's Investcorp is intent on having a cereal and coffee brand, this one in Singapore. The investment company will pick up majority stake in Viz Branz Holdings Pte, a family-owned maker of instant cereal and beverage brands in China and Southeast Asia.
China is the largest market for the company, accounting for over 65 per cent of its revenues. The Gold Roast brand has 35 per cent of the instant cereal market in southern China, an area with a combined population of over 220 million. Viz Branz has an established position in the China cereals market, which is worth over $1 billion.
Asia pivot
"This transaction represents an exciting opportunity in a market leading company and in what we believe is an attractive, resilient sector with substantial growth dynamics," said Hazem Ben-Gacem, co-CEO of Investcorp and Chairman of the Asia Food Growth Fund Investment Committee.
"We believe that Viz Branz is well positioned for expansion through increasing distribution in China and other parts of Southeast Asia, delivering product innovation and investing in the company’s operational and multi-channel capabilities as well as through add-on acquisitions. We believe that the company’s market leading positions could be leveraged to create a sizeable branded, packaged F&B platform in China and Southeast Asia."
The deal was done in partnership with the Asia Food Growth Fund I. The acquisition represents Investcorp’s 16th deal in the food and beverage industry in over three decades across the US, Europe, MENA and Asia.