Global investment management company Investcorp has acquired a majority stake in Singapore-headquartered food and beverage manufacturer Viz Branz Holdings from its shareholder and CEO, Ben Chng, according to a press statement.
The firm acquired the stake through its vehicle Asia Food Growth Fund I. Financial terms of the deal were not disclosed. This acquisition represents Investcorp’s 16th investment in the food and beverage space.
Following the acquisition, Chng will maintain a significant stake in Viz Branz.
“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. To date, Investcorp has invested over $1 billion in Asia, mostly in China.
Viz Branz makes and distributes instant cereal and coffee products such as Gold Roast, Calsome, Royal Myanmar Tea and Café 21 brands across China and Southeast Asian countries. The company distributes over 10 brands in the two regions. It has around 1,300 employees with manufacturing facilities and operations in China and Myanmar.
The company registered sales of S$170 million for the 12-month ended June 30, 2020. China is the largest market for Viz Branz accounting for a revenue contribution of over 65 per cent.
The Gold Roast brand enjoys a 35 per cent market share in the instant cereal segment in Southern China, which has a population of over 220 million. China’s cereals market is worth over $1 billion and it is expected to continue growing around 7 per cent per year to reach $1.4 billion by 2024.
In April 2020, Investcorp announced the first close at $275 million for its Asia food brands private equity platform, Asia Food Growth Fund I. The fund was jointly set up by Investcorp, China Resources and Fung Strategic Holdings Limited, a member of Fung Investments, the private investment arm of the families of Victor and William Fung, according to the firm’s press statement.
Investcorp Group has $32.2 billion in total AUM that includes assets managed by third-party managers.