Philippine snacks and beverage manufacturer Universal Robina Corp is buying New Zealand rival Griffin's Foods Ltd from Australia's Pacific Equity Partners (PEP) for NZ$700 million ($609 million), continuing a global rush to buy Australasian food companies.
In a statement, Universal Robina President and Chief Executive Lance Gokongwei said New Zealand is "a country trusted worldwide in having high credibility when it comes to food quality, safety and authenticity."
Universal, a unit of Philippine conglomerate JG Summit Holdings Inc, said it would acquire Griffin's by buying the latter's holding firm NZ Snack Food Holdings Ltd in cash.
Universal told the Philippine Stock Exchange its offshore unit, URC International Co Ltd, will fund the acquisition from long-term debt financing and internal sources.
"(Universal) has been looking for opportunities to explore potential acquisitions and partnerships in line with our vision to be a significant regional player in snack foods and beverages," Universal's Gokongwei said.
"We believe Griffin's is at the forefront of global consumer trends in snacking...we are very excited to introduce and grow these brands in Asia."
PEP, Australia's largest buyout firm, has been taking advantage of booming demand for Australian and New Zealand food suppliers as offshore rivals tap strong demand for quality food to feed Asia's growing middle class.
"We're confident the (Griffin's) growth story will continue under the ownership of (Universal), facilitating further growth into ASEAN markets," PEP Managing Director David Brown said in a statement, referring to the Association of Southeast Asian Nations where Universal has business.
Shares of Universal Robina have been suspended from trading on Monday, the Philippine bourse announced without saying when the suspension will be lifted.
The stock has gained nearly 40 percent so far this year, outperforming the Philippine market, which is up more than 16 percent.
