URC buys Australia’s 2nd largest salty-snack maker for $600 M
Universal Robina Corporation (URC) has agreed to pay $600 million (approximately Php 28 billion) Snack Brands Australia, the country’s second largest salty-snacks maker, and intends to take its key brands, including CCs, Kettle Chips, French Fries, Samboy and Cheezels into the Asian region, given the growing demand for Western foods.
In a report by the Australian Financial Review, the deal finally comes two years following URC’s acquisition of Griffin’s Foods, New Zealand’s largest snacks maker, from Pacific Equity Partners, a private equity firm, for $645 million or approximately Php 30 million.
Snack Brands makes up about 30% of the salty snacks market in Australia, and is the second largest player in the industry after Frito Lay which owns Red Rock Deli and The Smith’s Snackfood Company.
URC said that the $600 million sale recognized the growth potential of Snack Brands in Australia and overseas.
AFR said that it aims to leverage Snack Brands’ manufacturing capacity and its very own distribution system to grow in Asia, while sustaining the Sydney-based business as an independent unit.
The acquisition, however, is still subject to approval by the Foreign Investment Review Board.