Hormel Foods might be acquiring CVC Capital Partners’ (CVC) minority stake in Indonesia’s GarudaFood Putra Putri Jaya.
Hormel, known for its Spam and Skippy peanut butter, is now in the advanced stage of negotiation to buy the 20% stake. In 2018, CVC bought the stake at US$150 million. GarudaFood is a major Indonesian manufacturer of snacks, confectionery, biscuits and dairy products, with well-known consumer brands like Garuda, Gery and Chocolatos. It also owns a 49% stake in a local venture with Hormel called Hormel GarudaFood Jaya.
The acquisition could be timely as Hormel reported impressive 15% growth in sales revenue to US$9.1 billion for the first 9 months of 2022. Net income also grew 15% in the same period.
Hormel is also moving to 3 operating segments – Retail, Foodservice and International – with effect from 31 October 2022.
Meanwhile, GarudaFood’s sales rose 14% in 2021 to Rp8.8 trillion (US$590 million), while net profit more than doubled to Rp493 billion.
