Log in or Register for enhanced features | Forgotten Password?
White Papers | Suppliers | Events | Report Store | Companies | Dining Club | Drinks | Retail | Videos
Processed Foods
Savory Snacks
Return to: FBR Home | Processed Foods | Savory Snacks

Universal Robina to acquire Snack Brands Australia for $600m

FBR Staff Writer Published 17 August 2016

Philippine food company Universal Robina (URC) has entered into an agreement to acquire Snack Brands Australia for $600m.

URC said its offshore subsidiary will acquire 100% of Consolidated Snacks, which owns the Snack Brands Australia, from Toccata Securities and Hopkins Securities.

The transaction is subject to approval from the Australian Foreign Investment Review Board.

The company said that the final amount of consideration will be calculated on completion of the transaction.

URC plans to fund the transaction from long-term debt financing and other sources.

In a regulatory filing, the company said: “URC plans to create a wider footprint in the Oceania region with SBA providing a solid anchor in the highly competitive Australian fast moving consumer goods (FMCG) and retailing market but more importantly is completely synergistic with URC and Griffin’s, New Zealand's number one snackfoods company which was acquired by URC in November 2014.”

The transaction will enable Universal Robina to acquire brands owned by the Australia's second largest salty snacks producer Consolidated Snacks. The brands include Kettle Chips, CCs, Samboy, Cheezels and French Fries.

 Currently, Consolidated Snacks operates two manufacturing facilities in Sydney which are located in Smithfield and Blacktown.

URC said: “With continuous efforts of innovation, customer focus and operational efficiency, Snack Brands Australia has grown topline at a compounded annual growth rate of 7.4% in the past 4 years while EBITDA has grown 32.6% over the same time frame.”

URC, a subsidiary of Philippines' JG Summit Holdings, acquired Griffin's Foods from Australian Pacific Equity Partners (PEP) for about NZ$700m ($609m).

Image:Universal Robina to acquire Snack Brands Australia for $600m. Photo courtesy of Mister GC/FreeDigitalPhotos.net.