Hormel Announces Minority Investment in Garudafood
Hormel Foods Corporation has acquired a minority stake in PT Garudafood Putra Putri Jaya Tbk, one of the largest food and beverage companies in Indonesia.
“This strategic investment enhances our partnership with Garudafood, which has been instrumental in helping us expand our business into Indonesia and Southeast Asia,” said Jim Snee, chairman of the board, president and chief executive officer at Hormel Foods. “Garudafood is a market leader, with strong and reputable brands, local expertise and a best-in-class distribution network. We look forward to accelerating our presence in these high-growth geographies and the snacking and entertaining category as we further leverage the strengths and capabilities of both companies.”
Garudafood’s branded portfolio includes many leading snacking products, such as Garuda peanut snacks, Gery biscuits and confectionary products and Chocolatos wafer sticks.
“We are very excited to continue expanding and strengthening our partnership with Hormel Foods to grow Garudafood’s business together in Indonesia,” said Hardianto Atmadja, President Director of PT Garudafood Putra Putri Jaya Tbk. “Hormel Foods has more than 130 years of company history, so there are many things that we can learn from them. We also find that there are similarities in our company cultures and values, which are very important for a long-term partnership. There are some potential synergies and growth opportunities that we have identified, such as combining the strengths and expertise of Hormel Foods with our presence and local market knowledge.”
“This has been a successful partnership between the Soenjoto family, the strong management team at Garudafood and CVC,” said Andy Purwohardono, partner at CVC, which sold a significant portion of the shares acquired by Hormel Foods. “I would like to congratulate the leadership team for building resilience and growing the business profitably during the pandemic, as well as continuing its track record of launching new innovative products. Hormel Foods is the perfect partner for Garudafood, and I wish them a great success for the future.”
Hormel Foods purchased approximately 29 percent of the shares of Garudafood from CVC and other shareholders. The transaction closed during Indonesia Stock Exchange trading hours on Dec. 15, 2022.
Barclays was the exclusive financial adviser to Hormel Foods and Faegre Drinker Biddle & Reath LLP served as legal counsel. BofA Securities was the exclusive financial adviser to CVC and White & Case LLP served as legal counsel.