Hormel Foods Corp. is in advanced talks to buy a minority stake in Indonesia’s top snack-food maker PT GarudaFood Putra Putri Jaya from private equity firm CVC Capital Partners, according to people familiar with the matter.
(Bloomberg) — Hormel Foods Corp.
is in advanced talks to buy a minority stake in Indonesia’s top snack-food maker PT GarudaFood Putra Putri Jaya from private equity firm CVC Capital Partners, according to people familiar with the matter.
The US food giant has emerged as the likeliest buyer of the GarudaFood stake after outbidding rivals, the people said, asking not to be identified because the matter is private.
Hormel and CVC are hammering out the details of a transaction that could be worth a few hundred million dollars, the people said.
Talks are advanced and an agreement could be reached soon, though as in any deal, negotiations could still fall apart, the people said.
Representatives for CVC and GarudaFood declined to comment, while Hormel didn’t immediately respond to requests for comment.
Hormel, based in Austin, Minnesota, has a portfolio of brands including its eponymous deli meats as well as SPAM, Skippy and Planters, and generates more than $11 billion in annual revenue, according to a recent press release.
Its shares have slipped about 8% this year, valuing the firm at about $24.6 billion.
GarudaFood, which has a market value of about $1.2 billion, sells branded products including peanuts, potato chips, wafer sticks, crackers, cheese and biscuits, its website shows.
It also sells milk drinks for children. Its products are sold in more than 20 countries, with a focus on Southeast Asia, China and India.
CVC invested about $150 million in GarudaFood as the London-based buyout firm sought to deepen its exposure to fast-growing Southeast Asia back in 2018, Bloomberg News reported at the time.
The company went public in Jakarta later that year.
–With assistance from Fathiya Dahrul, Cathy Chan and Crystal Tse.
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