Intersnack buys 40% stake in URC Oceania

Universal Robina Corporation (URC), through wholly owned British Virgin Islands (BVI) subsidiary URC Oceania Co. Ltd., has entered into a strategic partnership with Europe-based Intersnack Group to boost its operations in the Oceania snack food market.

In a regulatory filing submitted by URC corporate secretary Rosalinda Rivera, the company said the respective board of directors of Intersnack and URC Oceania approved sale and acquisition of the 40% stake in the BVI company.

URC Oceania is the consolidation of Universal Robina’s businesses in Australia and New Zealand.

“The consideration for the transaction will be a mix of cash and shares of Yarra Valley Snack Foods Pty. Ltd.—Intersnack’s natural snack food unit in Australia,” according to URC. It did not disclose the value of the transaction.

“Leveraging on URC and Intersnack’s know-how from their respective markets will yield best practices in manufacturing, supply chain and sustainability practices, setting the groundwork for even larger and more efficient Oceania operations,” it said.

“Through this transaction, URC monetizes some of the synergies it has generated from its early investments in Australia and New Zealand, while still retaining control and its ability to further create value within and beyond ANZ,” it added.

The transaction will be completed once it has been approved by the Australian Foreign Investment Review Board and New Zealand Overseas Investment Office.

The privately-owned Intersnack Group is a European business operating in 24 countries with an extensive product portfolio of savory snacks such as potato and tortilla chips, puffed and other corn snacks, baked products, popcorn and nuts.

“It presently holds a leading position in all markets, mostly ranking #1 or #2 in terms of market shares … Intersnack generates about $ 3.0 billion (P158.6 billion) in net sales across Europe,” according to URC.

In Australia, Intersnack’s presence is currently limited to Yarra Valley, a market leader in “better-for-you, organic and gluten free snacks.” —VDS, GMA News