Bahrain-based leading global manager of alternative investment products, Investcorp has invested in Heritage Foods, a buy-and-build platform of leading condiments and sauces brands with a long-standing legacy in Singapore, Malaysia and Japan.
The transaction was in partnership with China Resources and Fung Strategic Holdings Limited and concluded through the Asia Food Growth Fund I, a dedicated private equity fund investing in a diversified portfolio of food-related companies in Asia.
Established in 2015, Heritage Foods is focused on the investment and reorganization of food businesses in the fast-moving consumer goods market in Asia, in addition to the acquisition of food brands with a strong Asian heritage to expand their global presence.
Headquartered in Hong Kong, Heritage Foods has its regional head offices and manufacturing plants in mainland China, Japan, Singapore and Malaysia, serving a global network of over 30 distributors. The company has a diversified portfolio of well-known and established brands across Asia with a long-serving history, including Hamada Shoyu in Japan, Bidor Kwong Heng in Malaysia and Woh Hup Food in Singapore.
“Investcorp has an established track record investing in companies operating in the food sector and currently stands as one of the few private equity firms to invest in this sector across the US, Europe, Middle East and North Africa (MENA) and Asia. We believe that the Asia food sector continues to offer attractive growth opportunities and we see that Heritage Foods is poised to achieve significant scale. The global sauces and condiments market size is estimated to be at $130 billion and is growing at 5-6 percent CAGR, with Asian sauces accounting for over 50 percent of the global market.”
Commenting on the conclusion of the deal, Ms. Monica Tsui, Managing Director of Fung Investment Management Limited said, “Through our partnership with Investcorp and China Resources, Fung Strategic Holdings will continue to deepen our penetration in the seasoning, sauces and condiments sector by leveraging our partnerships access in China, the Middle East and the rest of the world.”
The transaction represents Investcorp’s 21st investment in the food and beverage industry in the past three decades across the US, Europe, MENA and Asia and is the third that Investcorp made as part of its Asia Food Growth Fund I, following the investments made in Viz Branz and City Super Group last year.