PETALING JAYA: Ekuiti Nasional Bhd (Ekuinas) has sold 100% of its holdings in PrimaBaguz Sdn Bhd, a manufacturer of premium halal meat-based products, to Johnsonville International LLC for an enterprise value of RM175 million.
“This strategic acquisition of PrimaBaguz will enable Johnsonville to pursue its ambitions in setting up a halal food hub within the region,” Ekuinas said in a statement.
PrimaBaguz is a manufacturer of premium and high-quality halal meat-based products, and works closely with and supplies to local and global food industry players who are primarily in the Quick Service Restaurant (QSR) and hotels, restaurants and caterers (Horeca) segments, as well as wholesalers
Johnsonville is one of the leading processed meat companies in the US with market-leading products for breakfast, dinner and snacking occasions.
The sale attracted significant foreign direct investment and generated a gross internal rate of return of 22.1% and money multiple of 3.8 times the capital invested, which is part of Ekuinas’ portfolio strategy that is in line with the current market condition.
With this, it will bring the company’s total realisation proceeds to RM3.1 billion.
Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir said Ekuinas’ value creation plan (VCP) for PrimaBaguz has resulted in a 75% growth in revenue since its entry in 2013.
“Specific initiatives within the VCP include capacity improvements and operational enhancements, diversification of the manufacturing lines to cater to product customisation required by various clients, strategic supplier partnerships with popular fast food chains, as well as strengthening its management team. With these improvements in place, PrimaBaguz was able to tap into different segments within the industry and meet the increasing demand locally and regionally,” he said.
source https://www.thesundaily.my/business/ekuiti-nasional-sells-its-100-stake-in-primabaguz-to-johnsonville-for-rm175-million-EF3676886
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